119
Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking Water Quality Degradation in Ramallah and Al-Bireh Governorate ه الشرب نوعية ميامة لتدني الفرصة البدي تكاليف و ام في محافظة ر البيرةMaster’s Thesis Submitted By Najwan Imseih Student number 1075349 Supervised By Dr. Maher Abu-Madi June 2010

Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

  • Upload
    others

  • View
    3

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

Faculty of Graduate Studies

Water and Environmental Engineering Masters Program

MSc. Thesis

The Opportunity Cost of Drinking Water Quality

Degradation in Ramallah and Al-Bireh

Governorate

تكاليف الفرصة البديمة لتدني نوعية مياه الشرب

البيرة في محافظة رام هلل و

Master’s Thesis Submitted By

Najwan Imseih

Student number

1075349

Supervised By

Dr. Maher Abu-Madi

June 2010

Page 2: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

ii

Faculty of Graduate Studies

Water and Environmental Engineering Masters Program

MSc. Thesis

The Opportunity Cost of Drinking Water Quality

Degradation in Ramallah and Al-Bireh

Governorate

تكاليف الفرصة البديمة لتدني نوعية مياه الشرب

البيرة في محافظة رام هلل و

Master’s Thesis Submitted By

Najwan Imseih

Student number

1075349

Supervised By

Dr. Maher Abu-Madi

This thesis was submitted in partial fulfillment of the requirements for the Master’s

Degree in Water and Environmental Engineering from the Faculty of Graduate Studies,

Water Institute Studies, at Birzeit University, Palestine.

June 2010

Page 3: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

iii

The Opportunity Cost of Drinking Water Quality

Degradation in Ramallah and Al-Bireh

Governorate

تكاليف الفرصة البديمة لتدني نوعية مياه الشرب

البيرة في محافظة رام هلل و

Submitted by

Najwan Imseih

This thesis was prepared under the main supervision of Dr. Maher Abu-Madi and has

been approved by all members of the examination committee.

Examination Committee:

Dr. Maher Abu-Madi ………………………………………

Supervisor

Dr. Ziad Mimi ………………………………………

Member

Dr. Yousef Naser ………………………………………

Member

The findings, interpretations and the conclusions expressed in this study do not necessarily

express the views of Birzeit University, the views of the individual members of the MSc.

Committee or the views of their respective employers.

Page 4: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

iv

TABLE OF CONTENT Abstract ........................................................................................................................................ vii

viii ........................................................................................................................................... الخالصة

Dedication ..................................................................................................................................... ix

Acknowledgements ....................................................................................................................... x

List of Abbreviations ................................................................................................................... xi

List of Figures .............................................................................................................................. xii

List of Tables .............................................................................................................................. xiii

Chapter One Introduction ........................................................................................................ 1

1.1 Overview .......................................................................................................................... 1

1.2 Statement of the Problem ................................................................................................. 1

1.3 Research Questions .......................................................................................................... 2

1.4 Research Objectives ........................................................................................................ 2

1.5 Significance of the Study ................................................................................................. 3

1.6 Approach and Methodology ............................................................................................. 4

1.7 Assumptions and Limitations ........................................................................................... 4

1.8 Scope ................................................................................................................................ 5

1.9 Thesis Outline .................................................................................................................. 6

Chapter Two The Study Area: Ramallah and Al-Bireh Governorate ................................... 7

2.1 Location ............................................................................................................................ 7

2.2 Climate ............................................................................................................................. 8

2.2.1 Rainfall ........................................................................................................................... 8

2.2.2 Temperature .............................................................................................................. 8

2.2.3 Humidity ................................................................................................................... 9

2.2.4 Wind .......................................................................................................................... 9

2.3 Topography and Drainage ................................................................................................ 9

2.4 Land Use ........................................................................................................................ 10

2.5 Demography ................................................................................................................... 13

2.6 Groundwater Aquifer Basins .......................................................................................... 14

2.7 Water Demand................................................................................................................ 14

2.8 Water Supply .................................................................................................................. 14

2.8.1 Domestic Water Resources ..................................................................................... 15

2.8.2 Quantity of Water Supply ....................................................................................... 17

2.9 Economy......................................................................................................................... 18

2.10 Water and Sanitation Infrastructure ............................................................................... 19

Page 5: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

v

2.11 Water Tariffs .................................................................................................................. 20

Chapter Three Literature Review ............................................................................................ 22

3.1 Environmental Economics ............................................................................................. 22

3.2 Economic Valuation of Water Degradation ................................................................... 23

3.3 Economics of Opportunity Cost ..................................................................................... 25

3.4 International Drinking Water Quality ............................................................................ 26

3.5 Local Water Quality ....................................................................................................... 27

3.6 Water Quality Testing and Monitoring in the West Bank ............................................. 27

3.6.1 The Palestinian Water Authority ............................................................................ 28

3.6.2 The Palestinian Ministry of Health ......................................................................... 28

3.6.3 Jerusalem Water Undertaking and West Bank Water Department ......................... 29

3.6.4 UNRWA ................................................................................................................. 29

3.7 Laboratory Water Testing .............................................................................................. 30

3.7.1 Major Chemical and Physical parameters in water................................................. 31

3.7.2 Microbiological parameters in water ...................................................................... 35

3.8 Water Quality Standards and Guidelines ....................................................................... 36

3.8.1 General Definitions ................................................................................................. 36

3.8.2 WHO Drinking Water Standards ............................................................................ 37

3.8.3 Palestinian Drinking Water Standards .................................................................... 39

3.9 International Bottled Water Consumption ..................................................................... 39

3.10 Bottled Water Consumption in Palestine ....................................................................... 41

3.11 Bottled Water Quality Assessments ............................................................................... 41

3.12 Bottled Water Standards and Guidelines ....................................................................... 42

3.13 Adopted Definitions for Bottled Water .......................................................................... 44

3.14 Production and Treatment of Bottled Water in Palestine ............................................... 45

3.15 Footprints of Bottled water ............................................................................................ 47

3.16 Local Bottled Water Industries ...................................................................................... 47

3.17 Filtered Water ................................................................................................................. 48

Chapter Four Approach and Methodology ............................................................................ 49

4.1 Research Approach ....................................................................................................... 49

4.2 Data Collection .............................................................................................................. 51

4.3 Analytical Procedures ................................................................................................... 53

Chapter Five Results and Discussion ..................................................................................... 59

5.1 Public Water Quality Assessment .................................................................................. 59

5.1.1 Chemical and Physical Water Quality Parameters Measured at the Sources ......... 60

Page 6: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

vi

5.1.2 Chemical and Physical Water Quality Parameters in the Network ........................ 65

5.1.3 Microbial Analysis of Public Drinking Water ........................................................ 69

5.2 Bottled Water Industry Analysis ................................................................................... 71

5.2.1 Comparison of Quality versus Cost ....................................................................... 72

5.3 Water Filter Industry Analysis ....................................................................................... 75

5.4 Questionnaire Analysis .................................................................................................. 77

5.5 Economic Analysis ......................................................................................................... 81

5.5.1 Expenditure on Bottled Water ................................................................................ 82

5.5.2 Expenditure on Water Purification Apparatuses..................................................... 86

5.5.3 Total Expenditure on Drinking Water .................................................................... 88

5.5.4 Opportunity Cost of Drinking Water Expenditures ................................................ 89

5.5.5 Future Value of Total Expenditure on Drinking Water Supplies ........................... 90

Chapter Six Conclusions and Recommendations ................................................................... 92

6.1 Conclusions .................................................................................................................... 92

6.2 Recommendations .......................................................................................................... 93

6.3 Further Research ............................................................................................................. 95

References .................................................................................................................................... 96

Appendix 1 ................................................................................................................................. 101

Appendix 2 ................................................................................................................................. 104

Page 7: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

vii

ABSTRACT

In the recent years, it has been observed that there is an increase of consumption of bottled

drinking water in Palestine, mostly due to the perception that public drinking water is of low

quality, while some consumption is due to taste and lifestyle preferences. In addition, many

households have installed water purification equipment to protect against inferior (real or

perceived) public water quality. In the past 10 years mainly, the consumption of bottled water

and the installation of home water purification apparatuses have noticeably increased in the

Ramallah and Al-Bireh governorate. This research attempts to assess the quality of public

drinking water in the Ramallah and Al-Bireh Governorate, and to estimate the averted

expenditure on different drinking water to monetize the opportunity cost in 2009.

Generally, it was found that the supplied public water in the Ramallah and Al-Bireh governorate

conforms to the Palestinian standards for safe and healthy drinking water. Bottled water

consumption in 2009 is estimated at 58.3 liters per capita per year in the Ramallah and Al-Bireh

governorate. The total expenditure on bottled water in the Ramallah and Al-Bireh governorate

was found to be 23.25 million NIS in 2009, the total averted expenditure on bottled water was

estimated to be 22.0 million NIS and the total expenditure on water purification apparatuses was

found to be about 1.43 million NIS. Thus, the total expenditure on drinking water totaled to

23.43 million NIS in 2009. When these expenditures are represented as the opportunity costs, the

average person purchasing bottled water is forgoing the opportunity to save 400.94 NIS/yr, and

the average person who has installed a water filter is forgoing the opportunity to save 74.74

NIS/yr, which are both costs associated with drinking water expenditures. This research has

shown that water pollution and possible contamination, or the perception thereof, of public

drinking water has a cost to society.

Page 8: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

viii

الخالصة

تعز زيادة . لوحظ ارتفاع في استيالك المياه المعبأة في المناطق الفمسطينية, خالل السنوات األخيرة الماضية

باإلضافة إلى , االستيالك لممياه المعبأة غالبا العتقاد المواطنين بأن مياه الشرب العامة ذات جودة منخفضة

كما أن ىناك عدد من المنازل يستخدم أجيزة تنقية . ونمط الحياة العصرية, أسباب أخرى منيا طعم المياه

خالل العشرة سنوات الماضية لوحظ ارتفاع في . المياه البيتية لحمايتيم من تدني مستوى المياه العامة

كما تضاعف عدد , استيالك المياه المعبأة وتركيب أجيزة تنقية المياه في منطقة محافظة رام هلل و البيره

تيدف ىذه الدراسة إلى فحص جودة المياه .الشركات المزودة لممياه المعبئة وعمالء شركات أجيزة تنقية المياه

وتقدير مجموع ما تم انفاقو عمى المياه المعبأة , في منطقة رام هلل و البيره خالل العشر سنوات الماضية

. 2009خالل عام

قدرت . بشكل عام وجد أن جودة المياه في رام هلل والبيرة تطابق المواصفات الفمسطينية لجودة مياه الشرب

لتر ماء لكل شخص سنويا في منطقة رام 85.3 بحوالي 2009كمية استيالك المياه المعبئة خالل العام

مميون شيكل 1.43 عمى المياه المعبأة و 2009 مميون شيكل في عام 22.0وتم إنفاق مبمغ. هلل والبيرة

.2009مميون شيكل في عام 23.43 وىذا يعني انو تم انفاق ما مجموعو. عمى أجيزة تنقية المياه البيتية

عن ىتخل فقد لمياه المعبأة ل هشراءمواطن عند لفان ا, ت بسعر الفرصة البديمة عندما يتم تمثيل ىذه النفقا

قد أجيزة تنقية المياه البيتيةالذي قام بتركيب كما أن المواطن سنة ، ال في شيكل 400.94 إلنقاذفرصة

.نفقات مياه الشربب التكاليف مرتبطة جميع هذه سنة ، وال فيشيكل 74.74إلنقاذ عن فرصة ىتخلأو االعتقاد العام بين المواطنين بتدني مستوى , أو احتماالت تموثيا, أظيرت ىذه الدراسة أن تموث المياه

. تشكل عبء اقتصادي عمى المجتمع, المياه العامة

Page 9: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

ix

DEDICATION

To my loving husband,

To my amazing parents,

To my wonderful family and friends.

Page 10: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

x

ACKNOWLEDGEMENTS

My greatest gratitude and appreciation goes to all those who contributed to this study, whose

active support, encouragement and guidance made this research possible.

My personal thanks go to my husband, my parents, my family and friends for their assistance,

much appreciated words of encouragement, and constant moral support.

Particular thanks are due to the Birzeit University, Institute of Environmental and Water Studies,

and especially Dr. Maher Abu Madi for providing the inspiration for the topic of this research,

for his continuous guidance and for his intellectual leadership. Thank you to Dr. Ziad Mimi and

Dr. Yousef Naser, members of the examination committee, for your thoughtful comments and

suggestions.

Special thanks to the Palestinian Water Authority, Jerusalem Water Undertaking, Ministry of

Health, Central Public Health Lab, Ministry of National Economy, the Palestinian Central

Bureau of Statistics, and to all those who took the time to meet with me, for all the valuable

information they provided.

Page 11: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

xi

LIST OF ABBREVIATIONS

CPHL Central Public Health Lab

JWU Jerusalem Water Undertaking

L. Liters

l/c/d Liters per capita per day

Mcm Million cubic meters

MoH Ministry of Health

MoNE Ministry of National Economy

NIS New Israeli Shekel

PCBS Palestinian Central Bureau of Statistics

PSI Palestinian Standards Institute

PWA Palestinian Water Authority

WBWD West Bank Water Department

WHO World Health Organization

Page 12: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

xii

LIST OF FIGURES

Figure 2-1 Location map for Ramallah and Al-Bireh governorate ........................................... 7

Figure 2-2 Drainage systems in Ramallah and Al-Bireh Governorate .................................... 10

Figure 2-3 Built up areas ......................................................................................................... 12

Figure 2-4 Land use map ......................................................................................................... 12

Figure 2-5 Palestinian wells in Ramallah and Al-Bireh governorate ...................................... 16

Figure 3-1 Water pollution impacts .......................................................................................... 24

Figure 4-1 Key Steps in the Research Approach Process......................................................... 50

Figure 5-1 Major chemical and physical parameters measured at the sources ........................ 61

Figure 5-2 Major chemical and physical parameters measured in the network ...................... 66

Figure 5-3 Summary of coliform tests from 2000 to 2009 ...................................................... 70

Figure 5-4 Bottled water providers in the Ramallah and Al-Bireh governorate ..................... 71

Figure 5-5 Sales from the first bulk bottled water provider in the Ramallah region ............... 72

Figure 5-6 Distribution of types of drinking water ................................................................... 77

Figure 5-7 Respondents‟ reasons for water type selection ...................................................... 80

Page 13: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

xiii

LIST OF TABLES

Table 2-1 Summary of Demography Characteristics .................................................................. 13

Table 2-2 Economic indicators in Palestine from 1994 to 2008 ................................................. 19

Table 2-3 Factors for water tariff structure ................................................................................ 21

Table 3-1 Global Bottled Water Statistics .................................................................................. 40

Table 5-1 Summary of microbial tests performed from 2000-2009 ........................................... 70

Table 5-2 Comparison of bottled water providers in the Ramallah and Al-Bireh governorate .. 74

Table 5-3 Average costs of bottled water .................................................................................. 82

Table 5-4 Bottled Water Consumption (Avertive Behavior) ...................................................... 84

Page 14: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

1

CHAPTER ONE INTRODUCTION

1.1 Overview

Issues associated with drinking water have been stirring some attention in the environmental and

economic fields as well as among regular consumers worldwide. Bottled water industries

especially have seen increasing demands for their products in recent years. The world bottled-

water market represents an annual volume of 89,000 million liters, and is estimated to be worth

USD 22,000 million (Ferrier, 2001). Palestinian consumers are drinking more bottled water

every year, partly due to the fact that it is perceived as safer or of better quality than the public

drinking water. There seems to be many perceptions and some speculation regarding the public

drinking water quality of the Ramallah and Al-Bireh governorate. Collectively, hundreds or

thousands of New Israeli Shekels (NIS) are being spent on drinking water, which includes public

drinking water, purchased bottled water, and the costs incurred for the installation and

maintenance of water purification apparatuses in the homes. If in fact the public drinking water is

safe and healthy to drink, then this means that a significant amount of expenditure is being spent

on bottled water and water purification apparatuses and thus represents a significant opportunity

cost. In today‟s economy, the opportunity cost, or the value of what is foregone to have the next

best alternative, is an important cost for the average consumer.

1.2 Statement of the Problem

In the past ten years, the consumption of bottled water and the installation of home water

purification apparatuses have noticeably increased in the Ramallah and Al-Bireh governorate. In

fact, the number of bottled water companies and water filter dealers has multiplied. The

observable and sometimes intrusive marketing efforts of these industries are causing a stir among

Page 15: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

2

the local residents. People are troubled with the various allegations that their tap water is

contaminated or unhealthy and are generally confused as to which drinking water is the healthier

choice, causing them to expend more of their income on drinking water supplies. By shedding

some light on the quality and cost of public water, in comparison to the quality and cost of

bottled and filtered water, consumers will be able to make an educated decision about the type of

water which is most suitable for them and their families. Additionally, the per capita water

consumption in the Ramallah and Al-Bireh governorate has generally been calculated by

dividing the total quantity of supplied water by the population. This estimate, though, does not

take into consideration the amounts of bottled drinking water consumption into the equation,

leaving a gap in this regard.

1.3 Research Questions

Some of the questions which this research aims to answer are:

o What is the quality of public drinking water in the Ramallah and Al-Bireh governorate?

o What is the expenditure on drinking water supplies (which includes tap water, bottled water

and/or filtered water) and how does this translate as the opportunity cost?

o What is the average bottled water consumption in the Ramallah and Al-Bireh governorate?

o What are the proportions of the population drinking different types of water in the

governorate?

o What are some perceptions of residents regarding the public drinking water?

1.4 Research Objectives

The main objectives of this research are to assess the quality of public drinking water in the

Ramallah and Al-Bireh governorate, to estimate the expenditure on different drinking water

Page 16: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

3

supplies, which include bottled drinking water and home water purification apparatuses, and to

monetize the opportunity cost of these expenditures. The specific objectives of this research are

to:

1) Compile a grouping of chemical and microbial water quality data for public drinking water

supplies in the Ramallah and Al-Bireh governorate and carry out a water quality

assessment.

2) Gather information on the bottled water industries in Ramallah and Al-Bireh governorate

and provide an estimate of the quantity of bottled water sold in the governorate.

3) Estimate the yearly bottled water consumption in the Ramallah and Al-Bireh governorate.

4) Provide an estimate of the cost of water degradation, if any, in the Ramallah and Al-Bireh

governorate based on averted expenditures, using the most recent data available, and

monetize the opportunity cost of these expenditures.

5) Estimate indicator values of the proportions of residents in the Ramallah and Al-Bireh

governorate consuming different types of water.

6) Better understand the perceptions of consumers regarding their choice of drinking water

type.

1.5 Significance of the Study

This study will be a significant endeavor in assessing the quality of drinking water and the

expenditure on its various sources in the Ramallah and Al-Bireh governorate. This study will

contribute to enhancing the knowledge of average consumers on drinking water quality based on

scientific facts and economic calculations. The results of this study will provide some insight and

information for further research for water scientists and water economists. The study provides a

scientific discussion of concerning water quality issues and intends to provide useful information

on common issues and concerns related to drinking water in the Ramallah-Al Bireh governorate.

Page 17: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

4

1.6 Approach and Methodology

The research approach adopted in this study is made up of a combination of methods. The study

is both desk-based and field-based. Scholarly articles and books were reviewed on water quality

assessments and standards, the international bottled water industry, and home water purification

processes and systems. In addition, primary and secondary data on water quality was collected.

Interviews were carried out with actors in the bottled water industry and filter dealers as an aid to

reveal essential primary data. Research data was sourced, collected and collated accordingly. A

questionnaire was distributed to 155 households in order to obtain indicator values of the

proportions of residents in the Ramallah and Al-Bireh governorate consuming different types of

water, to estimate the household expenditures on drinking water, to better understand perceptions

regarding public drinking water, and to provide an estimate of the average bottled water

consumption in the Ramallah and Al-Bireh governorate. The aggregated data from the company

surveys and questionnaires is used to find the total expenditure on drinking water supplies for the

year 2009 in the Ramallah and Al-Bireh governorate and to provide an estimation of the

opportunity costs.

1.7 Assumptions and Limitations

Several assumptions and limitations influenced this study and it should be noted that a study is

only as good as the data on which it is based. Based on water supply data and population

estimates, it is assumed that in the study area there is no shortage of water, i.e. that sufficient

water reaches the residents at all times of the year. Thus, it is assumed that the purchase of

bottled water in the Ramallah and Al-Bireh governorate is not attributed to a shortage in public

drinking water. One scenario in this case plays out when tap water becomes fouled following

water cuts and people avert to purchasing bottled water. It is also assumed that bottled water is

Page 18: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

5

consumed all year long, and not only during the summer months when intermittent water

shortages in some areas do in fact occur. Environmental information was difficult to collect and

in the real world data gaps can be a significant limitation, such as missing data on water quality

in certain years, and lack of data on bottled water consumption and water filter industries in

Palestine.

1.8 Scope

In discussing the issue of purchased water, it is essential to note that Palestine is a special case.

Many Palestinian communities rely a great deal on purchased tankered water, private wells,

springs, etc. to meet their daily water demands. Considering that many rural areas are not even

served by a water distribution network, a study of the quality and costs associated with public

drinking water and bottled water for Palestine as a whole would be inaccurate. Yet the situation

in Ramallah and Al-Bireh governorate is quite different. Significant parts of Ramallah and Al

Bireh governorate, including the Ramallah and Al-Bireh twin cities, ten other cities/towns, more

than 43 villages and 5 refugee camps, are served by a water distribution network. There are a few

remaining localities not served by a water network, which is about 3% of the households in the

governorate, but these will be disregarded in this study.

This study does not attempt to be considered as a purely economic study rather it collaborates

between the scientific, technical and economic aspects of the general topic of drinking water.

Additionally, it is important to note that this study does not intend to undermine the importance

of the bottled water and filter industries which are an important sector in the Palestinian

economy and livelihood, yet this study does provide a discussion of concerning issues and

Page 19: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

6

intends to a provide useful information and a comprehensible understanding of selected issues

regarding drinking water in the Ramallah-Al Bireh governorate.

1.9 Thesis Outline

This thesis is composed of six chapters. Chapter 1 offers an introduction to the content and

structure of the research, including the statement of the problem, research questions and

objectives and research assumptions and limitations. Chapter 2 describes the study area of

Ramallah and Al-Bireh governorate, providing a briefing of the general characteristics and water

resources of the area. Chapter 3, the literature review, discusses environmental economics, water

quality standards, parameters and assessments, bottled water guidelines and trends and briefly

discusses filtered water. Chapter 4 explains the approach and methodology adopted in this

research from purpose of the study to the data collection and analysis phase. Chapter 5 provides

the results and offers a discussion of the results. Chapter 6 draws conclusions and offers

recommendations formulated as an outcome of this research.

Page 20: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

7

CHAPTER TWO THE STUDY AREA: RAMALLAH AND AL-BIREH

GOVERNORATE

2.1 Location

In the central area of the West Bank, lies the governorate of Ramallah and Al-Bireh. It is

bordered by the Jerusalem governorate in the south, the Nablus and Salfit governorates in the

north, Jericho governorate in the east, and the 1948 borderline between Israel and West Bank

from the west, as shown in Figure 1. The twin cities of Ramallah and Al-Bireh are located within

this governorate. The two cities are about 860 meters above sea level, and have a moderate and

pleasant climate, allowing them to be a center for commercial and tourist attraction.

Figure 2-1 Location map for Ramallah and Al-Bireh governorate (HWE, 2009)

Page 21: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

8

2.2 Climate

The climate of the area is mainly that of the Mediterranean type, characterized by long, warm,

dry summers and short, cool, rainy winters.

2.2.1 Rainfall

Rainfall is limited to about six rainy months per year, usually between November and April. In

general, the distribution of rainfall is strongly influenced by the topography, with higher rainfall

in the hills and mountains. The average rainfall was recorded by the Palestinian Meteorological

Department, with over 80 rainfall stations distributed geographically from the northern to the

southern parts of the West Bank, and was found to be 40-70 days for the rainy season of the year

2008. The annual quantity of rainfall in Ramallah and Al-Bireh governorate in 2007 was 543.9

mm (PCBS, 2008a). The average annual rainfall is higher in the western part of the governorate

than the eastern part. The average annual rainfall in the eastern part of the governorate varies

from 200 to 450 mm, whereas in the western part of the governorate, the average annual rainfall

varies from 350 to 550 mm. In the mountains the average annual rainfall heights vary from 550

to 700 mm (HWE, 2009).

2.2.2 Temperature

Since the Ramallah and Al-Bireh governorate is part of the hilly region of the West Bank, it has

lower temperatures compared to other governorates. The mean annual temperature is 17.1 °C, as

stated by the PCBS in 2008, and the maximum annual average temperature is 21.4°C whereas

the minimum annual average temperature is 13.1°C. January is the coldest month with

temperatures between 6-12 °C, while August is the hottest month with temperatures between 22-

27 °C (PCBS, 2008a).

Page 22: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

9

2.2.3 Humidity

The average annual relative humidity in the Ramallah and Al-Bireh governorate was 57% in

2007 and reaches its highest rates during the months of January and February. For the extreme

maximum relative humidity, the highest value was 100% registered for (January – April) in

Ramallah Station (PCBS, 2008a).

2.2.4 Wind

In winter season, the wind moves in a general west-east direction with an average daily wind

speed of 16.0 km/hour in December, but during summer winds are northwestern and

northeastern, hot and dry with an average wind speed of 18.6 km/hour in August (PCBS, 2008a).

2.3 Topography and Drainage

Surface elevations in the Ramallah and Al Bireh governorate vary widely. The highest point in

the governorate is 1,022 m above sea level at Tal A‟sur, whereas the lowest elevation is 100 m

below sea level at the southeast corner of the governorate. The topography of Ramallah and Al-

Bireh is divided into three main parts: the eastern slopes, mountain crests and western slopes.

The eastern slopes are located between the Jordan Valley and the mountains and are

characterized by steep slope forming wadis. The mountain crests form a steep surface water

divide that separates the eastern and western slopes, with an elevation ranging between 750 and

800 meters above sea level. The western slopes are characterized by gentle slopes with an

elevation ranging between 250-500 meters above sea level (HWE, 2009).

There are two major drainage systems in the Ramallah and Al-Bireh governorate: one runs to the

west towards the Mediterranean while the second runs to the east towards the Jordan River (as

Page 23: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

10

shown in Figure 2-2). Figure 2-2 also shows that the groundwater divide and the surface water

divide do not coincide on the same line. As it can be seen for the surface water divide, Ramallah

drains to the west while Al-Bireh drains to the east. As for the groundwater flow movement, both

cities drain to the east.

Figure 2-2 Drainage systems in Ramallah and Al-Bireh Governorate (HWE, 2009)

2.4 Land Use

The Ramallah and Al- Bireh Governorate covers an area of approximately 855 km². This makes

up about 15.1% of the West Bank and 14.2% of the Palestinian territories (Gaza Strip and West

Bank) (PCBS, 2008b).

Page 24: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

11

There are a number of different land use classes within the Governorate boundaries, and these

include Palestinian built up areas, Israeli settlements, cultivated areas, forests, nature reserves

and industrial areas.

There are about 80 Palestinian built up areas in the governorate. Ramallah, Al-Bireh, Silwad,

Bani Zeid, Birzeit, Deir Dibwan and Bitunia are the only communities designated as

municipalities. Village councils govern other built up areas. In addition, there are five refugee

camps, Al-Amari, Qaddura, Al-Jalazone, Silwad and Deir A‟mmar. Figure 2-3 shows the built

up areas in Ramallah and Al-Bireh governorate.

There are 24 Israeli settlements in the Ramallah and Al-Bireh governorate, occupying

approximately 30.27 km2 of the governorate‟s land (3.54 % of the total governorate‟s land). The

current population of the Israeli settlements is estimated to be 81,851 settlers (PCBS, 2008b).

The total cultivated area in Governorate covers approximately 184.9 km2 (PCBS, 2008b). Rain-

fed agriculture is the most dominant farming pattern in the governorate, occupying

approximately 184.4 km2

while the remaining lands are irrigated (see Figure 2-4). The total

forested area is about 2.1 km2 and the areas designated as „Natural Reserves‟ in the governorate

make up a total area of almost 34.9 km2 (PCBS, 2008b).

There are two industrial areas in Ramallah and Al-Bireh governorate; one is located to the south

of Ramallah City and the other to the east of Al-Bireh City. Together they cover an area of

approximately 1.34 km2.

Page 25: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

12

Figure 2-3 Built up areas (HWE, 2009)

Figure 2-4 Land use map (HWE, 2009)

Page 26: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

13

2.5 Demography

The Ramallah and Al-Bireh governorate covers an area of about 855 km2 and holds a population

of approximately 279,730 persons, as of December 1, 2007. This includes 140,827 males and

138,903 females. The population density is about 327 capita/km2. The population of Ramallah

and Al-Bireh governorate can be classified by type of locality, where 136,406 or 51.9% of the

total governorate population live in urban areas, 111,259 or 42.3% of the total governorate

population live in rural areas, 15,276 or 5.8% of the total governorate population live in camps.

The total number of households in the governorate is 49,676, where 27,182 are located in the

urban areas, 19,750 are in the rural areas, and 2,744 are in camps. The average size of the

governorate households is 5.3 and the population natural increase rate is 3%. According to

estimates in 2009, the percentage of people aged 0-14 years in the governorate is about 38.1% of

the total governorate population. About 55.5% of the total population is aged between 15-64 and

3.9% of the population is aged 65 years and over (2.6% of Governorate population ages are

unstated) (PCBS, 2009). This data is summarized in Table 2-1.

Table 2-1 Summary of demography characteristics

Total Population of Ramallah and Al-Bireh governorate 279,730

Number of households in Ramallah and Al-Bireh governorate 49,676

Population Density

327 capita/km2

Average size of household 5.3 persons

Natural population increase rate 3%

Males Females

Population classification by sex 140,827 138,903

0-14 years between 15-64 65 years +

Population classification by age 38.1% 55.5% 3.9%

Urban Rural Camps

Population classification by locality 136,406 (51.9%) 111,259 (42.3%) 15,276 (5.8%)

Number of households 27,182 19,750 2,744

Source: PCBS, 2009

Page 27: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

14

2.6 Groundwater Aquifer Basins

The West Bank lies over three main aquifer basins: Eastern, Northeastern and Western Basins.

Ramallah and Al-Bireh governorate lies over the Eastern and Western Basins. The Eastern

Aquifer Basin underlies the Eastern part of governorate. Its water flows towards the east and

southeast. The Western Aquifer Basin underlies about 45% of the Ramallah and Al-Bireh

governorate to the west and its water flows towards the west (HWE, 2009).

2.7 Water Demand

In calculating the water demand for Ramallah and Al-Bireh governorate, the World Health

Organization standard for the amount of required water for drinking and other domestic uses per

capita of 150 l/c/d is adopted (WHO, 2008). Considering the most recent population consensus

for 2007 was 279,730 inhabitants, the needed amount of water is about 15.3 Mcm/yr. The

Palestinian Central Bureau of Statistics calculated the per capita daily allocation of water for

Ramallah- Al Bireh governorate from the quantity of water supplied, which is about 13.70 Mcm,

with a population of about 279,730, leading to a daily allocation per capita of 134.2 l/c/d. The

Palestinians can supply only about 3.4 Mcm/yr from their own resources (PCBS, 2008c); the rest

are purchased from the Israeli water company „Mekorot‟. This is discussed further in the next

section.

2.8 Water Supply

The main water resources in the West Bank, and region as a whole, are groundwater aquifers.

Wells and springs constitute the main sources of water in the West Bank. Surface water and

seasonal small rivers running in the wadis can also be considered as additional water sources

which are used mainly for agricultural purposes.

Page 28: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

15

In general, the supply of drinking water in the West Bank can be classified into 2 main sources:

i) wells and springs managed by municipalities, village councils, or water distribution

organizations; and ii) purchased water from the Israeli water company „Mekorot‟, which is

distributed by the West Bank Water Department (PWA, 2007).

2.8.1 Domestic Water Resources

In the Ramallah and Al-Bireh governorate, the sources of domestic water supply are Palestinian

owned wells, purchased water resources, and springs. About 25% of water in the Ramallah- Al

Bireh governorate is obtained from Palestinian owned wells, mainly the Ein Samia groundwater

wells, which are operated by the Jerusalem Water Undertaking and about 75% of water is

purchased from Mekorot (PWA, 2007). The water produced from the Ein Samia wells is mixed

with the water purchased from Mekorot to supply about 50 communities in the Ramallah and Al-

Bireh governorate, and some communities within the jurisdiction of the Jerusalem governorate.

1. Palestinian owned wells - Ein Samia Well Field: This well field is made up of 5 Palestinian

wells owned by the Jerusalem Water Undertaking (JWU) for the Ramallah and Al-Bireh

governorate. The JWU is responsible for the management, operation, and monitoring of these

wells. The Ein Samia wells are located in the eastern aquifer of the West Bank at a depth of

60 to 600 meters below ground level. The annual extraction from the Ein Samia wells in

2007 was about 3.356 Mcm (PCBS, 2008d). The maximum annual extraction capacity of the

wells in Ein Samiya is 3.5 Mcm which is possible only with adequate rainfall during the

winter season, and it has been shown that there is a decrease in the productivity of the Ein

Samia wells (HWE, 2009).

2. Purchased water resources: These include water purchased for the West Bank Water

Department and from the Israeli water company „Mekorot‟.

Page 29: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

16

West Bank Water Department (WBWD) Wells: These wells are originally Palestinian

wells which were drilled during the Jordanian Mandate period, but were confiscated by

the Israeli occupation authorities and were handed over to Mekorot. The WBWD holds

the responsibility for distribution of waters to the Palestinian cities, villages and the

Israeli settlements inside the West Bank. Four wells are located in the Shibtin area, west

of Ramallah city, but only one of them is currently in operation, producing about 0.552

Mcm/yr, (PWA, 2007).

Israeli Water Company (Mekorot): The sources of water for Mekorot are either from

wells inside the green line or inside the West Bank, and recently also from desalination

plants constructed inside Israel. The total amount of the purchased water from Mekorot in

2007 was about 10.875 Mcm (PCBS, 2008e) to supply the major parts of Ramallah and

Al-Bireh governorate. This includes the pumped water from the wells which are located

in the Palestinian Territory and controlled by Mekorot.

Figure 2-5 Palestinian wells in Ramallah and Al-Bireh governorate (HWE, 2006)

Page 30: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

17

3. Springs: There are a total of 31 springs in the governorate, with an annual discharge of 1.714

Mcm (PCBS, 2008f). Only 6 of these springs are used for drinking water. The springs are

located in villages within the governorate. A number of these springs, such as Ein Arik

spring and Al‟Ajool spring are no longer used for drinking water purposes because water

distribution networks have been installed and the JWU has supplied these areas with piped

water (PWA, 2007).

2.8.2 Quantity of Water Supply

The quantity of water supplied for the domestic sector in Ramallah and Al-Bireh governorate

was 2.82 Mcm in 2007 (PCBS, 2008g). This represents the water quantities pumped from wells

with domestic permits. No water quantities used for domestic use and pumped from agricultural

wells with agricultural permits were recorded, and likewise no water quantity discharged from

springs and used to supply localities through public networks were recorded. About 10.88 Mcm

of water was purchased from Mekorot (which includes the pumped water from the wells which

are located in the Palestinian Territory and controlled by Mekorot). Thus, the total quantity of

water supplied for the domestic sector in Ramallah and Al-Bireh governorate was about 13.70

Mcm in 2007, the second highest governorate in the West Bank following Hebron, which was

supplied with 16.87 Mcm in 2007 (PCBS, 2008g). It is important to note that in some areas there

is a big difference between supply and actual household use. By taking into consideration the

commercial and public consumption and after deducting the loss rate, this difference can be high.

Page 31: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

18

2.9 Economy

Ramallah and Al-Bireh governorate has become the economic center in the West Bank. In recent

years, the governorate has developed at an incredibly high rate, where many new commercial

centers and housing projects have been constructed and many investors have established new

businesses (HWE, 2009). Economic activities in Ramallah and Al-Bireh governorate range from

agricultural to commercial and industrial activities, but generally speaking, agricultural activity

has declined and cultivated lands are being replaced by residential and commercial ventures.

The number of economically active Palestinian population in Ramallah and Al-Bireh

governorate is 67,254 or 35.6% of the total Palestinian population (in the age group of 10 and

over), including 54,356 males or 57.5% of the total male population in the governorate (in the

age group of 10 and over) and 12,898 females or 13.7% of the total female population in the

governorate (in the age group of 10 and over). The number of unemployed people of the

Palestinian population of the Ramallah and Al-Bireh governorate is about 7,516 or 11.2% of the

total population (in the age group of 10 and over). The rate of unemployment by locality type is

16.1% in refugee camps, 13.4% in rural areas, and 11.8% in urban areas (PCBS, 2009). The

average household‟s monthly expenditure in the West Bank (household consisting of 6.1

persons) was JD 707.7 in 2008 and the food share of total expenditure is 35.4% (PCBS, 2008h).

The most commonly used indicator of the national output of goods and services has been the

gross domestic product (GDP), which is the value of final goods and services produced within

the nation during a specified period of time. GDP per capita is calculated by dividing GDP by the

population of the country, while GDP at constant prices may be measured over a series of years

Page 32: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

19

by discounting changes in the value of money (Gilpin, 2000). Table 2-2 shows the GDP in

constant prices, GDP per capita, and household expenditure in Palestine from 1994 to 2008.

Table 2-2 Economic indicators in Palestine from 1994 to 2008

Source: MAS, 2010.

2.10 Water and Sanitation Infrastructure

In Ramallah and Al-Bireh governorate, there are two main institutions working in the water

sector as suppliers: the Jerusalem Water Undertaking and the West Bank Water Department. The

served area of JWU extends over 600 km2 and covers for the time being, significant parts of

Ramallah and Al-Bireh governorate, which includes Ramallah and Al-Bireh twin cities, 10 other

cities/towns, more than 43 villages and 5 refugee camps, and the northern part of Jerusalem. The

number of subscriptions is about 51,567 serving a total estimated population of 280,000 people.

The remaining localities in the Ramallah and Al-Bireh governorate are either supplied with water

by the West Bank Water Department or not yet served (JWU, 2007). About 92% of the

governorate is served by a public network, 5% is served by a private system, and about 3% has

no piped water supply (PCBS, 2007).

Page 33: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

20

2.11 Water Tariffs

The Palestine Water Authority (PWA) is officially mandated to establish an appropriate unified

tariff system and monitor its implementation for the water supply and wastewater utilities. The

PWA, with the Ministry of Local Government and various municipalities and institutions,

produced the „Tariff Policy Guidelines‟ which interprets the Water Law No. 3 / 2002, with the

aim to promote water conservation and ideal consumption. The main goals of the guidelines are

to: allow water departments to recover costs for producing and distributing water; ensure social

equality, such that households with limited income are able to pay for the tariffs on water

consumed for basic human needs; and to promote water conservation, such that the tariff

increases with increase water usage (PWA personal communication, 2010).

To differentiate between different water consumers, the tariff system classifies consumers

according to water usage, and applies the water tariff accordingly, as shown in Table 2-3. The

price of one cubic meter in level 1 is the same as that in level 2, thus they can be considered one

main group. The value of 10 m3 was selected as the end range for level 2 because it was found to

be the highest amount of consumption essential for basic human needs in the average Palestinian

household, where the average Palestinian household was considered to have 6 persons, thus:

10 m3 = 10,000 liters/6 months = 1666.7 liters/capita/month = 1666.7/30 = 55.6 l/c/d

This amount (55.6 l/c/d) was considered sufficient for basic human needs, including drinking and

cooking, etc. Based on mathematical calculations and classifications of different sectors, the

factors for water tariff structure, shown in Table 2-3, were developed to be adopted by the PWA,

municipalities, and water providers.

Page 34: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

21

Table 2-3 Factors for water tariff structure

Type of Use Levels of Consumption (m3)

Level 1 Level 2 Level 3 Level 4 Level 5

<5 5.1 – 10 10.1 – 20 20.1 – 30 >30

Domestic 1.0 1.0 1.2 – 2.0 2.0 – 2.5 2.5 – 3.0

Public Institution 1.0 1.0 1.5 – 2.0 2.0 – 2.5 2.5 – 3.0

Commercial 2.0 – 3.0 2.0 – 3.0 2.5 – 4.0 2.5 – 4.0 2.5 – 4.0

Industrial 2.0 – 3.0 2.0 – 3.0 2.5 – 4.0 2.5 – 5.0 2.5 – 6.0

Source: PWA, personal communication.

Depending on the type of water use and on the levels of consumption, the price of water is

multiplied by the respective factor to determine the water tariff. Presently, each municipality or

water provider in the West Bank charges a different price for the quantities of water sold, and

each applies their own water tariffs. In the Ramallah and Al-Bireh governorate, the Jerusalem

Water Undertaking has adopted a tariff structure which is fundamentally similar to the structure

developed by the PWA (Table 2-3), yet the West Bank Water Department and many

municipalities have not (PWA, personal communication). It is envisioned by the PWA that all

water providers in Palestine will adopt this unified water tariff structure.

Page 35: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

22

CHAPTER THREE LITERATURE REVIEW

This chapter reviews the literature on environmental economics, valuation of water quality

degradation and opportunity costs, drinking water quality, and bottled water and filtered water

production both locally and internationally. Given the importance of drinking water, there is a

wealth of literature on the topic.

3.1 Environmental Economics

„Environmental economics‟ is a specialized branch of economics which embraces the issues of

pollution control, climate change, protection of the natural environment, and conservation, and

issues in the resolution of which markets play little or no part, but in which vast natural assets

need to be allocated sensibly to the common good (Gilpin, 2000). The subject is therefore

concerned with costs and benefits on a social and global scale. Likewise, „Ecological

Economics‟ is a multidisciplinary field which integrates elements of economics, ecology and

other sciences. According to Costanza et. al (1997), ecological economics, encompasses a

concern for: (1) sustainability, or the maintenance of human well-being and the services rendered

by natural systems over intergenerational time scales; (2) economic efficiency, or the satisfaction

of human preferences as operationalized through cost-benefit analysis; and (3) distributional

equity, or the just sharing of burdens and benefits between social groups. Economists analyze the

problem of environmental disruption as a form of external effects (Ng, 2005) and thus pollution

can be considered a negative externality.

Page 36: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

23

3.2 Economic Valuation of Water Degradation

Economic valuation refers to the assignment of monetary values to non-market goods and

services, where the monetary values have a particular and precise meaning (Bateman, et.al.,

2002). Here, the non-marketed good has no market but contributes positively to human

wellbeing, such as cleaner water or air. One way of measuring the economic values attached to

non-marketed goods and services is by seeing if they influence actual markets for some other

good.

The concept of „economic value‟ is discussed by Bolt et. al (2005), where it is defined as the

maximum willingness to pay for an environmental or natural resource. For example, individuals

spend money on bottled water or water filters to avoid exposure to water pollution. This

information allows economists to measure the economic values. Some guidance to the value that

people place on their environment can be estimated by observing how much is spent on

preventing damage to it and on its enhancement, such as the costs of water filters (Gilpen, 2000).

Bolt et. al (2005) outline the effects of water pollution, the impacts associated with them and

possible techniques to value these impacts, as shown in Figure 3-1.

Page 37: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

24

Figure 3-1 Water pollution impacts (Bolt et. al., 2005)

Bolt et. al. (2005) state that often the valuation of health impacts from pollution considers only

the actual number of cases of sickness, however, when defensive actions are possible, a

researcher must consider how individuals respond to avoid (increase) exposure to an

environmental hazard. This is known as averting or defensive behavior. Therefore, the effect of

pollution is not only sickness, but also the amount of resources spent to avoid it.

The averting behavior method begins with the notion that people try to protect themselves when

faced with environmental risk thus requiring expenditures that would not be made if not faced

with the environmental health risk. For example, the purchase of bottled water or water filters

may only be made when faced with the risk of contaminated drinking water. In the context of

water resources, households may respond to increased degradation in various ways that are

Water Pollution

Health Impacts

Medical cost

Human capital

Averting behavior

Contingent valuation

Loss of ecosystems

Change in productivity

Cost of replacement

Hedonic prices

Contingent valuation

Page 38: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

25

generally referred to as averting or defensive behaviors so as to avoid the adverse impacts of

water contaminants (Birol, 2006). These include buying non-durables (e.g., bottled water),

making expenditures to reduce water contamination (e.g. purchasing filters), and changing

behavior to avoid exposure to the contaminant. Um et. al. (2001) studied the willingness to pay

for improved drinking water quality using averting behavior method with perception and found

that the perception measure provided a valid explanation for citizens‟ aversion to using tap water

in Korea.

The averted expenditures on bottled water in Lebanon were studied by Sarraf et al. (2004), where

it was found that the lack of safe potable water, or perception thereof, has an additional cost in

terms of averted expenditure on bottled water, estimated at US$82-89 million per year, or around

0.5 percent of GDP per year.

3.3 Economics of Opportunity Cost

„Opportunity Cost‟ is defined as the value of the thing that is sacrificed by making a particular

choice, where the value of resources allocation to the options chosen is conventionally measured

in money terms (Bateman et. al., 2002). In other words, opportunity cost is the value of what is

foregone in order to have something else. This value is personal to each individual and

determined by wants and resources (such as income). Today economists recognize that water

resources, and the natural systems they support, provide many economic goods and services

(Jarvis, 2008). A consideration of opportunity cost assists in ensuring that resource are put to the

best use and that all costs are taken into account, thus in cost-benefit analysis (CBA), the

opportunity costs should be taken into account in the assessment, yet CBA is often used in

Page 39: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

26

situations where the signals that market prices often provide are either absent of fail to reflect

adequately the opportunity cost of the resources involved (Gilpin, 2000).

3.4 International Drinking Water Quality

The United Nations General Assembly, at its Millennium meeting in 2000, established eight

Millennium Development Goals (MDGs) with targets to be achieved by 2015, with the aim of

speeding up poverty alleviation and socio-economic development. The MDGs, which respond to

the world's main development challenges, were drawn from the actions and targets contained in

the Millennium Declaration that was adopted by 189 nations-and signed by 147 heads of state

and governments during the UN Millennium Summit in September 2000 (UN, 2009). Water

quality management contributes both directly and indirectly to achieving the targets set out in all

eight MDGs, and it is most significant to ensure environmental sustainability and indicators of

water quality can be used to demonstrate progress toward the targets, by plotting trends in water

quality over time and over space (UN, 2006). Overall, the total economic benefits of meeting the

MDG target, to halving the proportion of people without access to safe water and sanitation by

2015, have been estimated at US$ 84 billion (SIWI, 2005). Water contributes to poverty

alleviation in many ways – through sanitation services, water supply, affordable food and

enhanced resilience of poor communities to disease, climate shocks and environmental

degradation (UN, 2009).

The problem of drinking water quality, however, is not confined to the developing world where

water treatment may not exist or is inadequate. Studies have also shown that drinking water

quality in developed countries may also not be assured. Many first world waters suffer from

serious and long lasting contamination, mainly due to: high amounts of salt, a particular problem

Page 40: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

27

for many irrigated areas and coastal areas with over-exploited aquifers; and fertilizer and

pesticide residues from agriculture which in some areas have percolated down to deep aquifers

(Dickie, 2006). For example, in the US, there is increasing anxiety over the level of

contamination with chemicals and pathogens in water sources and water supplies (Richardson,

2003; Berry et al, 2006). In France, drinking water testing uncovered that 3 million people were

drinking water whose quality did not meet WHO standards, and 97% of groundwater samples

did not meet standards for nitrate in the same study (UN, 2009).

3.5 Local Water Quality

Water quality in the Eastern, North Eastern and Western aquifers of the West Bank area are

characterized as good, with some limitations concerning the major parameters such as chloride,

sodium, potassium, sulphate, nitrate, and other biological indicators such as fecal coliform, and

total coliform (Samhan et al., 2009). Generally, water in the Ramallah area is considered of good

quality (interview with staff of Palestinian Water Authority, Jerusalem Water Undertaking and

Ministry of Health). Anayah, and Almasri (2009), carried out an assessment of nitrate

concentrations in the aquifers of the West Bank, Palestine, and found that in general, all the

districts except Ramallah and Al-Bireh, have nitrate concentrations that severely exceed the

maximum contaminant level of 10 mg/l NO3-N (50 mg/l NO3, based on the USEPA for the year

2000.

3.6 Water Quality Testing and Monitoring in the West Bank

The protection of valuable water resources and regular monitoring of the water quality in the

West Bank are the main environmental priorities of the Palestinian National Authority. Water

quality monitoring in the West Bank is not only one of the main responsibilities of the

Page 41: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

28

Palestinian Water Authority (PWA) but is also a fundamental concern for many other national

organizations. Thus, the joint efforts and cooperation of all concerned parties ensure that safe and

clean water reaches the population.

3.6.1 The Palestinian Water Authority

The Palestinian Water Authority (PWA) is the regulating body for the water sector in the West

Bank and Gaza. By its own definition, its roles and responsibilities include the enforcement of

water pollution controls and protection of water resources. One of the highest priorities of the

PWA is to ensure the safety and health of Palestinian residents, the protection of water resources,

and the prevention of their contamination and overexploitation. The PWA regularly monitors

water quality through a monitoring program, carried out by the Water Quality Department.

Water samples are regularly gathered from wells and springs, and are analyzed chemically and

physically (PWA, 2007). Bacteriological tests are carried out by the Ministry of Health, since

that ministry is responsible for the water purification/chlorination.

3.6.2 The Palestinian Ministry of Health

The Palestinian Ministry of Health (MoH) is the regulator of the health subsector in Palestine.

The MoH is responsible for establishing and regulating health standards and guidelines in the

West Bank. These include drinking water standards and guidelines for other uses of water in the

West Bank (MAS, 2009). MoH is responsible for monitoring the quality of water reaching the

users. The tests performed are mainly physical, chemical, and microbiological tests, which are

carried out by the Central Public Health Laboratory. The Central Public Health Laboratory

(CPHL) is the technical and scientific body of the Ministry of Health, accredited by the

Palestinian Standards Institute (PSI) according to the ISO/IEC 17025, 1999 (updated in 2005). It

Page 42: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

29

provides suggestions and opinions to the Ministry of Health concerning health issues. The

mission of the CPHL is to identify and control the agents that might affect human health, which

is achieved by performing suitable laboratory analysis, surveys and scientific researches on

special issues.

The CPHL cooperates with other public health divisions to prevent and control diseases and to

identify health hazards in the environment, food, water, etc. and to help in corrective action

decision. These divisions include the: Sample Receiving Division, which is responsible for

receiving and handling water samples, among others; Microbiology Division, where

microbiological test are carried out for water, wastewater, etc.; Chemistry Division, where

chemical tests are carried out; Quality Assurance Division, which monitors and maintains the

quality assurance program and reports the results of its observations to the Directorate (personal

communication with CPHL).

3.6.3 Jerusalem Water Undertaking and West Bank Water Department

These institutions are responsible for monitoring their water systems, which includes the sources,

water tanks, and main distribution networks which fall under their jurisdiction (PWA, 2007).

Regular monitoring includes physical and bacteriological testing, which have the most

significance in regards to public health based on WHO guidelines (WHO, 2008).

3.6.4 UNRWA

The United Nations Relief and Works Agency for Palestine Refugees in the Near East

(UNRWA) provides assistance, protection and advocacy for Palestinian refugees. UNRWA is

the main provider of basic services, including water, to registered Palestine refugees, and is

Page 43: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

30

responsible for monitoring their water services inside Palestinian refugee camps. Their water

resources, which include springs, wells, water distribution pipelines carrying purchased water

from Mekorot, main water tanks, are regularly monitored according to WHO standards (PWA,

2007).

3.7 Laboratory Water Testing

To ensure that water quality in Palestine is in accordance with standards, the Jerusalem Water

Undertaking and Central Public Health Lab of the Palestinian Ministry of Health undergo regular

sampling of the water at different sources and carry out a variety of quality tests. This process

includes: i) Sampling ii) Transport of samples iii) Testing of samples. These are considered

equally important for ensuring accurate test results (JWU, 2006). In reality, every water sample

in contact with the atmosphere contains dissolved gases, including oxygen and carbon dioxide

and every water sample in contact with sediment and rock contains other dissolved constituents

such silicon and calcium. Therefore, in the natural environment there is no such thing as „pure

water‟ in the chemically rigorous definition (Vanloon and Duffy, 2005).

Water samples in Ramallah and Al-Bireh governorate are collected regularly by the proper

authorities and are tested for major chemical and microbial parameters. Main chemical analysis

includes major cations such as calcium (Ca), magnesium (Mg), sodium (Na) and potassium (K),

and major anions like bicarbonates (HCO3), chloride (Cl), sulphate (SO4) and nitrate (NO3).

Major physical parameters include pH, temperature and conductivity and major microbial

parameters are fecal coliform and total coliform.

Page 44: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

31

The following sections provide the usual chemical, physical, and microbiological characteristics

of water and describe their significance. Reference is made to the following standards:

a) The Palestinian Standards Institute Guidelines for Drinking Water- updated in 2005;

b) The World Health Organization Guidelines for Drinking Water-Water Quality, updated

in 2008.

3.7.1 Major Chemical and Physical parameters in water

Chemical substances are naturally found in some drinking water supplies but these are generally

only a concern if they are present above guideline levels and if a person is exposed to them over

a period of years. Advances in science are showing that exposure to some chemical contaminants

above guideline levels may be a concern in the short-term as well. Physical and aesthetic quality

guidelines address parameters which may affect consumer acceptance of drinking water, such as

taste, odor and color. A description of each of these parameters, based on scientific references

(Twort, et al, 2000; WHO, 2008; EPA, 2009) is presented below:

Calcium

Calcium is found in most water in the form of calcium carbonate or bicarbonate, especially in

water that are associated with chalk or limestone, and as calcium sulphate. The level of calcium

depends on the type of rock through which the water has passed. Since calcium is an essential

part of the human diet and since the nutritional value from water is usually minimal compared to

the amounts of calcium obtained from an average diet, there are no health objections to high

calcium content in drinking water. Thus, no maximum allowable limits are specified in the WHO

guidelines. The PSI guidelines suggest a maximum desirable limit of 100 mg/l. Main limitations

may be expressed to prevent excessive scale formation.

Page 45: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

32

Chloride

Chlorides are found in almost all water, usually in combination with sodium. Chlorides occur

from several sources including mineral deposits, agricultural or irrigation discharges, urban

runoff, or from sewage and industrial effluents. The main problems caused by high chloride

content in water are: i) increase corrosion rate of iron, steel and plumbing metals; ii) taste, where

some people may detect chlorides in drinking water at concentration levels as low as 150 mg/l,

and at levels above 250 mg/l a salty taste can be obvious to most people. The WHO guide level

for chloride is 250 mg/l. This is the same level required by the PSI guidelines.

Magnesium

Magnesium forms highly soluble salts which contribute to the hardness of water. Thus, high

amounts of magnesium in domestic water cause problems of scale formation. The WHO

guidelines do not specify maximum concentrations of magnesium. The PSI guidelines suggest a

maximum desirable limit of 100 mg/l.

Sodium

Sodium compounds are very abundant in the environment and are soluble in water. Sodium may

impart a taste on water, depending on the water temperature and anions present. The WHO

guideline value and the PSI guideline value for sodium is 200 mg/l, based on taste.

Potassium

Potassium is an abundant element, but rarely found in high concentrations in natural waters. The

WHO guideline does not specify a maximum value for potassium. The PSI guideline suggests a

maximum acceptable limit of 10 mg/l.

Fluoride

Fluoride in drinking water has been associated with dental issues. Fluoride levels have to be

closely controlled since an excessive amount can lead to fluorosis, resulting in mottling of the

Page 46: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

33

teeth, and low levels of fluoride may result in increased dental problems. The greatest reduction

of dental decay occurs if the fluoridated water is drunk in childhood during the period of tooth

formation. The WHO and PSI guideline value is 1.5 mg/l.

Sulphates

Sulphates come from several sources such as the dissolution of gypsum and other mineral

deposits containing sulphates; from seawater intrusion; from the oxidation of sulphides,

sulphites, and thiosulphates in well aerated surface waters; and from industrial effluents where

sulphates or sulpuric acid have been used in processes such as tanning and pulp paper

manufacturing. The WHO maximum allowable value is 250 mg/l SO4 based on taste and

corrosion potential, where the PSI maximum allowable value is 200 mg/l SO4.

Nitrite and Nitrate

Nitrite is an intermediate oxidation state of nitrogen. The presence of nitrites may be a sign of

sewage pollution, but that may not always be the case. Nitrate is the final stage of oxidation of

ammonia and the mineralization of nitrogen from organic matter. High Nitrate concentrations in

both surface water and groundwater may be attributed to the use of nitrogenous fertilizers on the

land. Water with high nitrates may be potentially harmful to infants, causing

methaemoglobinamia, also known as „Blue Baby Syndrome‟. The WHO guideline value for

nitrate as NO3 is 50 mg/l and for nitrite as NO2 is 3 mg/l. The PSI guideline value for nitrate as

NO3 is 50 mg/l, but may be acceptable to a maximum limit of 80 mg/l if no alternative water

source is available. The PSI guideline does not specify a value for nitrite.

Total Dissolved Solids and Electrical Conductivity

The total dissolved solids (TSD) refer to the amount of salts in water. Since salts are in the form

of ions in solution, then this allows electrical conductivity. Thus, electrical conductivity, which is

a measure of the ability of a solution to carry electrical current, is dependent on the amount of

Page 47: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

34

TDS. Water with high levels of TDS can result in a salty taste and may cause scaling to water

systems. On the other hand, water with low levels, which is desirable for many industrial

processes, may also have an unacceptable taste to consumers and may be corrosive to domestic

plumbing. There is no WHO or PSI guideline value for conductivity, instead the WHO and PSI

have set a guideline level of 1,000 mg/l for total dissolved solids.

pH value

The pH value is a measurement of the acidity of water. It is an important parameter in water

chemistry since many of the processes involved in water treatment are pH dependent. A solution

is said to be neutral when the numbers of hydrogen ions and hydroxyl ions are equal, each

corresponding to an approximate concentration of 10-7

moles/l. This neutral point occurs at pH

7.0 at 25°C. At pH values less than 7.0, the water has acid characteristics; at pH values greater

than 7.0, the water has basic characteristics. Waters which have percolated through chalk or

limestone, as is the case in most of the West Bank, generally have higher pH values. The WHO

guidelines give a range of 6.5-8.5 for the pH value of drinking water and a treatment pH value of

<8.0 for effective disinfection with chlorine. Likewise the PSI sets a pH range of 6.5-8.5 for

drinking water.

Hardness

Hardness refers to the characteristic of typical hard water, which when it reacts with ordinary

soap forms a curd or scum. Hardness is expressed as CaCO3. The problems caused by excessive

hardness are mainly the formation of scale in kettles, boilers and hot water systems. Based on

aesthetic characteristics, the WHO and PSI guidelines suggest maximum desirable limit for total

hardness as CaCO3 to 500 mg/l.

Page 48: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

35

Alkalinity

Alkalinity is generally considered as the opposite of acidity, where as the pH value increases, the

alkalinity increases. The alkalinity of water actually comes from the sum of bicarbonates,

carbonates, and hydroxides of calcium, sodium, and potassium. Alkalinity is a key factor in

determining the corrosive properties of water. Both the WHO and PSI guidelines do not specify a

maximum value for alkalinity.

Turbidity

Turbidity is an optical property which causes light to be scattered and absorbed rather than

transmitted in straight lines through a sample. The WHO guidelines set the maximum value to be

5 NTU, which is acceptable to consumers, and also set a treatment standard of less than or equal

to 1 NTU for successful disinfection. The PSI set a maximum value of 1 NTU.

Color

The color of water is a physical characteristic which determines the acceptability of water upon

consumer perception. The WHO and PSI guidelines give a guide level of 15 TCU (true color

units), above which the color would be noticeable in a glass of water by most people.

3.7.2 Microbiological parameters in water

The most significant risks to people's health from drinking water come from microscopic

organisms such as disease-causing bacteria, protozoa and viruses. The guidelines that relate to

these microorganisms are stringent because the associated health effects can be quite severe and

can also affect health over the long-term.

Total Coliform and Fecal Coliform

Coliform bacteria are found all over the environment and have been used as indicator organisms

by water microbiologists. This group may contain a species that are referred to as

Page 49: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

36

„thermotolerant (fecal) coliforms‟, which is natural to the intestine and is present in the feces of

man and other warm blooded animals. E.coli is one of these, which if found in drinking water

provides clear evidence of fecal pollution. The WHO and PSI standards have a common standard

for drinking water:

- no fecal coliforms detected in 100 ml of sample;

- the Total Coliform in the water tested must not exceed 3/100 ml;

- 95% of 100 ml samples must not show the presence of coliform organisms.

3.8 Water Quality Standards and Guidelines

3.8.1 General Definitions

In water quality, the terms „standards‟ and „guidelines‟ are used interchangeably. These terms

can be generally defined to prevent confusion. According to the Merriam-Webster Dictionary

(2010), a „standard‟ is something set up and established by authority as a rule for the measure of

quantity, weight, extent, value, or quality and a „guideline‟ is a guide or an indication or outline

of policy or conduct. In other words, a standard is usually a collection of specific requirements

for a system or procedure, which must be met by everyone. A guideline is typically a collection

of „suggestions‟, developed for best practice and they are not requirements to be met, but are

strongly recommended based on facts and evidence.

The words „pollutant‟ and „contaminant‟ are also generally used interchangeably, but a

distinction can be made by adopting the definitions made by the Dictionary of Environmental

Science and Technology, where a contaminant is defined as “any substance present in the

environment above a „natural‟ level whether or not it causes a detrimental effect” and a pollutant

is defined as “a contaminant that causes adverse effects”. Here, it is possible to define water

Page 50: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

37

pollution as any concentration of chemical (or microorganism) in water above the „natural‟ (also

called background or baseline) level (Vanloon and Duffy, 2005). This definition implies that

there must be a set of standards or guidelines which provide an indication of the properties which

if exceeded would constitute an adverse effect. Scientific research over the past years have

helped identify many toxic products in drinking water and have helped develop regulations and

guidelines for the protection of the public health from waterborne diseases. The World Health

Organization (WHO) set such guidelines for drinking water quality which act as advisory values

for world-wide application. The Palestinian Standards Institute also set such standards which are

mandatory for water undertakers in Palestine. These are discussed below.

3.8.2 WHO Drinking Water Standards

An established goal of WHO and its Member States is that ‘all people, whatever their stage of

development and their social and economic conditions have the right to have access to an

adequate supply of safe drinking-water’ (WHO, 2008). ‘Safe drinking water' here refers to a

water supply which is of a quality which does not represent a significant health risk, is of

sufficient quantity to meet all domestic needs, is available continuously, is available to all the

population and is affordable. These conditions can be summarized as five key words: quality;

quantity; continuity; coverage; and, cost (WHO, 2008). The first WHO publication dealing

specifically with drinking water quality was published in 1958 as „International Standards for

Drinking-Water’.

Thousands of organisms and substances have been identified in drinking water supplies around

the world, but the WHO Guidelines do not specifically discuss each and every one because it is

neither necessary nor feasible to develop recommendations for all these. Microorganisms

Page 51: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

38

selected for evaluation were selected through an international consultation process, on the basis

of the presence in water and likely risk to human health. A special emphasis was given to

developing guidance on selection of indicator organisms that can give early warning of faecal

contamination and likely potential risks of disease.

The WHO Guidelines adopted a clear policy that microbiological quality must be the key water

quality priority, and thus the chemicals for evaluation were selected through an international

consultative process, guided by three main criteria: i) The substance presents a potential hazard

for human health; ii) The substance was detected relatively frequently and at relatively high

concentrations in drinking-water indicating that there may be significant exposure to humans; iii)

The substance was of major international concern (i.e. of interest to several countries). On this

basis, 128 priority chemicals were selected for evaluation in the WHO Guidelines and health-

based acceptable levels of exposure from drinking-water (Guideline Values) recommended for

95 of these, taking into account all sources of exposure. Guideline values were not recommended

for certain substances because they were found to be not hazardous to health, because of

inadequate health effects information, or because the concentration of the chemical normally

found in drinking-water does not represent a hazard to human health.

The guideline values set forth by the WHO represent the concentration of a chemical constituent

that does not result in any significant risk to the health of the consumer over a lifetime of

consumption. Guidelines are set for indicator bacteria - E.coli or thermotolerant (faecal)

coliforms and total coliforms, which give a good indication of the likelihood of faecal

contamination in a water supply.

Page 52: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

39

It is important to note that short-term deviations above the guideline values do not necessarily

mean that the water is unsuitable for consumption. The amount by which, and the period for

which, any guideline value can be exceeded without affecting public health depends upon the

specific substance involved. Also, no attempt was made in the guidelines neither to define

minimum desirable concentrations of essential elements in drinking-water nor to determine

aesthetic parameters.

3.8.3 Palestinian Drinking Water Standards

The Palestinian Standards Institute (PSI) is Palestine‟s standards organization, founded in 1994.

PSI provides access to national and global standards, mainly in the fields of food, electrical

engineering, mechanical engineering, civil engineering, and chemistry.

In 2005, PSI released an updated version of the „Drinking Water‟ specifications, PSI 41-2005

(PSI, 2005). This publication presents conditions for the physical, biological, and chemical

characteristics of drinking water. In the same year, the PSI also released „Bottled Drinking

Water‟ specifications. These are discussed in section 3.12. The „Drinking Water‟ specifications

specifically refer to that water „which is suitable for drinking, domestic purposes, that which is

used in the food industry, and that which complies with specifications PSI 41-2005.

3.9 International Bottled Water Consumption

The world bottled-water market represents an annual volume of 89,000 million liters, and is

estimated to be worth USD 22,000 million; western Europeans are the world‟s major bottled

water consumers, consuming about 85 l/c/year (Ferrier, 2001). According to the Food and Water

Watch, a nonprofit consumer rights organization based in Washington-DC, consumers are

Page 53: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

40

wasting hundreds and thousands of dollars on bottled water because they think it is healthier or

safer than its counterpart from the tap. Their report shows that Americans alone are drinking a lot

of bottled water: 31.4 billion gallons or 98.4 liters per person in 2006 (FWW, 2007). Lebanon‟s

population consumes a large quantity of bottled water, where the bottled water consumption is

about 115 liters per capita per year (Sarraf et. al., 2004). Table 3-1 shows the global bottled

water statistics for production volume, production value, and per capita consumption for bottled

water between 2000 and 2003. The numbers show that the per capita consumption is generally

increasing over the years for most countries and in terms of per capita consumption, West

Europe and the USA top the list. Appendix 1 offers the per capita bottled water consumption by

country from 1999 to 2004. It is shown that Italy, Mexico, and the United Arab Emirates lead the

table with over 160 liters per person per year. European countries dominate the top of the list and

poorer countries are found at the bottom of the list, as shown in table 3-1, providing some

indication of perhaps the limited availability and/or the high cost of bottled water in developing

countries. Appendix 1 also offers the global bottled water, which shows that bottled water

consumption is greatest in Europe, though the rate of increase in North America and Asia is

higher.

Table 3-1 Global Bottled Water Statistics

Source: International Council of Bottled Water Associations, 2004

Page 54: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

41

According to Gleick, 2004, the global consumption of bottled water is growing faster than 10%

per year with substantial growth in sales volumes on every continent. The highest growth rates

are occurring in Asia and South America, with annual sales increases of 15% or more in places

as diverse as Egypt, Kuwait, the United States, and Vietnam, and the slowest growth is occurring

in European countries, where bottled water has long had a commercial foothold. Even there,

growth rates of five to ten percent per year are common.

3.10 Bottled Water Consumption in Palestine

In 2007, the average monthly household quantity of mineral water consumed in the Palestinian

territory was 0.765 L, where 0.049 L. were consumed in the Gaza Strip, 1.105 L in the West

Bank, and 0.615 L in the West Bank not including Jerusalem. In the Palestinian territory, the

average household monthly consumption is subdivided by localities as follows: 0.113 L in

camps, 0.5 L in rural areas and 1.098 in urban areas. This is also subdivided by „household level

of living‟ as 0.06 L for households classified as „worse-off‟, 0.911 for households classified as

„middle‟, and 1.159 for households classified as „better-off‟ (PCBS, 2008). The Level of Living

is identified by the proportion of consumption on food out of the total consumption and is

distributed to three categories: Better-off (food consumption to total consumption less than 30%);

Middle category (food consumption to total consumption between 30-44%); Worse-off (food

consumption to total consumption between 45-100%).

3.11 Bottled Water Quality Assessments

The main selling point of bottled water companies has generally been the superior water quality

over any other sources. Yet, the quality of bottled water has been questioned in several reports

and scientific studies. The Natural Resources Defense Council carried out a four-year scientific

Page 55: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

42

study of bottled water which included the testing of more than 1,000 bottles of 103 brands of

bottled water, and found that while most of the tested waters were found to be of high quality,

some brands were contaminated -about one-third of the waters tested contained levels of

contamination (NRDC, 1999). Zamberlan da Silva et al, (2006) showed that the bacteriological

quality of municipal tap water is superior when compared with the 20-L bottles of mineral water

collected from water dispensers and samples collected from new 20-L bottles of mineral water

before installation in the dispensers. Other studies have investigated chemicals and trace metals

found in bottled water (Snyder, et al, 2009; Keresztes, et al, 2009; Krachler, et al, 2008).

3.12 Bottled Water Standards and Guidelines

Bottled water standards and guidelines have been set by the Palestinian Standards Institute. The

WHO Guidelines apply to bottled water and ice intended for human consumption but do not

apply to natural mineral waters, which should be regarded as beverages rather than drinking-

water. The Codex Alimentarius Commission has developed Codex standards for such mineral

and bottled waters.

In 2005, the Palestinian Standards Institute (PSI) released an updated version of the PSI „Bottled

Drinking Water‟ specification, PSI 69-2005, updated in 2008 (PSI, 2008). This publication

outlines the types of bottled water and their classification, guidelines for methods of water

production, treatment, bottling, storage, and transport. These guidelines describe procedures for

labeling and marketing bottled water, and provide requirements for the chemical and

microbiological characteristics of the water, as well as methods for testing. The PSI standard

refers to complementary references from:

- Codex Alimentarius Commission, second edition (revised 1999)

Page 56: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

43

- FDA, Food Code U.S. Public Health Service -1999

- Food Chemcial Codex FCC

These are discussed in further below.

Codex Alimentarius Commission, second edition (revised 1999)

The Codex Alimentarius Commission was created in 1963 by FAO and WHO to develop food

standards, guidelines and related texts such as codes of practice under the Joint FAO/WHO Food

Standards Program. The main purposes of this Program are protecting health of the consumers

and ensuring fair trade practices in the food trade, and promoting coordination of all food

standards work undertaken by international governmental and non-governmental organizations.

The Codex Alimentarius provides a collection of internationally recognized standards, codes of

practice, guidelines and other recommendations relating to foods, food production and food

safety. It has been published in many languages including Arabic. Codex Alimentarius standards

and guidelines have been published for bottled water and drinking water.

FDA Food Code U.S. Public Health Service, 1999

The US Food and Drug Administration (FDA) publishes the Food Code to assist food control

governmental authorities in regulating the retail and food service industry, which includes

restaurants, grocery stores and institutions. The Food Code provides a scientifically sound

technical and legal basis for regulators and allows them to develop or update their own food

safety rules and to be consistent with national food regulatory policy. The Food Code is updated

every four years but during this period the Food Code Supplement provides updates,

modifications, or clarification on certain provisions. In 2009, the latest edition of the FDA Food

Code was published.

Page 57: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

44

Food Chemical Codex FCC

The FCC, first published in 1966, provides a collection of internationally recognized standards

for the purity and identity of food ingredients. The FCC aims to protect commerce and public

health by providing criteria and analytical methods to determine the quality of food ingredients.

FCC standards are used as agreed standards between suppliers and manufacturers in ongoing

purchasing and supply decisions and transactions and they can aid manufacturers in

distinguishing genuine products from inferior ingredients and substances. This helps to make

the food supply chain safer and assuring consumers of the quality of the food products they eat.

3.13 Adopted Definitions for Bottled Water

According to the Palestinian Standards Institute Guidelines for Bottled Drinking Water (PSI 69-

2005), the following definitions have been adopted to classify the different types of bottled

water:

1) Bottled water: Water filled into sealed containers which is safe and suitable for direct

consumption, and complies with these set forth standards.

2) Sparkling Bottled Water: bottled water to which CO2 has been added during treatment.

3) Groundwater: water which originates from the subsurface and aquifers.

4) Natural water: water which has not been subjected to any type of treatment, except for

disinfection, such that there have been no changes made to the natural physical and

chemical properties.

5) Mineral water: water which originates from a natural source and has a value of TDS which

is equal to or less than 250 mg/l.

Page 58: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

45

6) Treated drinking water (purified): water which has been subjected to a type of treatment

method or technology, such as ion exchange or reverse osmosis or any other suitable

treatment which allows the water to comply with drinking water standards.

7) Spring water: water which naturally emerges from underground to the surface at a natural

location.

8) Well water: water which is pumped from a groundwater well.

3.14 Production and Treatment of Bottled Water in Palestine

The Palestinian Standards Institute guideline for „Bottled Drinking Water‟ describes standards

and procedures for the production and treatment of bottled drinking water, and its filling, storage,

transport, and marketing.

The standards for bottled drinking water production and treatment include:

The water source must be licensed by the Palestinian Water Authority (PWA) and

monitored by the Palestinian Ministry of Health (MoH), through which a microbial test

must be performed daily and chemical tests must be performed routinely every six months.

Water must be transferred from the source to the bottling factory by a transmission line or

water tanks, which must be licensed by the MoH and PWA.

The water bottling production line must only be used for water and not any other product.

Only the following processes may be used for the treatment of water:

o Sedimentation and filtration;

o Activated Carbon Filter;

o Disinfection, using methods approved by the MoH;

o Distillation;

Page 59: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

46

o Reverse Osmosis;

o Ion exchange.

The standards (PSI, 2005) for bottled drinking water filling, storage, transport and marketing

include:

Water may be filled in glass containers or plastic „PET‟ only for 2 L. volumes; other types

of plastic such as „PC‟ may be used for volumes greater than 2L., only with MoH approval.

Re-filling plastic bottles of the 2 L. volume or smaller is prohibited.

Refillable plastic bottles and caps must be cleaned and disinfected, based on MoH

procedures, before each use.

Bottles must be sealed properly after filling to ensure that the water is not contaminated

throughout the transporting and storage process; sealing caps must be new and must be

produced from materials such as PP, PE.

Water bottles must adhere to PSI standards, if available, or to Codex standards.

Water must be transported and stored under sanitary conditions and away from direct

sunlight.

The bottled water label must describe:

o The type/classification of water;

o Type of treatment (for treated water);

o Source of water name and location, production country, production factory and

location.

o Constituents: Mineral constituents (calcium, magnesium, sodium, potassium,

bicarbonate, chloride, sulphate, nitrate, nitrite, fluoride, iron) and pH, TDS.

o Additions of CO2;

o Size of container;

Page 60: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

47

o Production and expiration date;

o Etc.

3.15 Footprints of Bottled water

The bottling processes adopted by companies in Palestine generally consume 1.5-2 L. of water

for every 1 L. of water (interviews with bottled water companies‟ personnel). This volume is

mainly needed by bottling operation and process, packaging and the transportation phases. This

signifies a considerable water footprint for the bottled water industry. In an Italian study, a

Footprint Integrated approach was used to assess and compare the impact on the environment

and on the resources of tap water and PET-bottled natural mineral water. The results showed that

in comparison based on Ecological Footprint and Carbon Footprint, tap water showed about 300

times lower values than bottled water, however, the water footprint values, where only water

consumption was accounted, were almost the same for tap water and bottled water (Botto,

2009).

3.16 Local Bottled Water Industries

The bottled water industry in Palestine is a relatively new industry. Before 1999 there were very

few bottled water brands being sold in the Palestinian market, and very few of the companies

were local. The number of local bottled water companies in Palestine has significantly increased

since the year 2000 and the bottled water industry has greatly expanded.

Recently in the Ramallah and Al-Bireh governorate, there has been a noticeable increase in

bottled water brands being found in the market. Based on records from the Ministry of National

Economy and on field visits, there are over 14 companies producing bottled water for the

Page 61: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

48

Palestinian market. According to the Ministry of National Economy, about 90% the bottled water

industry in Ramallah is dominated by four major companies, 2 of which are locally bottled and 2

are imported either from Jordan or Israel.

3.17 Filtered Water

Residents of Ramallah and Al-Bireh are increasingly purchasing water purification apparatuses

to treat their drinking water. It should be noted that different units remove different contaminants

or classes of contaminants from the water. A water treatment device can either be free-standing,

attached to a tap, plumbed in with a dedicated faucet (also called a point-of-use device)

connected to a refrigerator‟s water and ice dispensing system; or centrally attached to treat all

water entering a house (a point-of-entry device) (EPA, 2005). Generally, homes are equipped

with point-of-use devices. The following provides a description of the types of point-of-use-

devices used in the homes in Palestine and their processes (EPA, 2005):

o Filter pitchers: Most water pitchers use granular- activated carbon and resins to bond with

and trap contaminants. These filters are effective at improving the taste of water, and many

will also reduce lead and other contaminants.

o Activated carbon filters: These filters are effective at improving the taste of tap water and

some will also reduce lead, protozoan cysts, and many other contaminants

o Reverse Osmosis Units: Reverse osmosis units force water through a semi-permeable

membrane under pressure, leaving contaminants behind. Reverse osmosis units use

approximately three times as much water as they treat, but they are effective in eliminating

all disease-causing organisms and most chemical contaminants.

Page 62: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

49

CHAPTER FOUR APPROACH AND METHODOLOGY

This chapter presents the study‟s selected research methodology. The methodology is influenced

by the purpose of this study and is based on an assessment of the optimal strategy for responding

to the research questions. Based on the purpose of the study and the research questions stated in

chapter one, this chapter discusses the research approach adopted for the data collection phase

and data analysis procedures.

4.1 Research Approach

The basic research method used in this study is a combination of approaches. The study was both

desk-based and field-based. Scholarly articles and books were reviewed on environmental

economic assessments, water quality assessments and standards, the international bottled water

industry, and home water purification processes and systems. In addition, secondary data on

water quality was collected. Interviews were carried out with actors in the bottled water industry

and filter dealers as an aid to reveal essential primary data. Research data was sourced, collected

and collated accordingly. A survey was conducted to reaffirm selected results and to provide the

additional aspect of consumer perception to the discussion of drinking water. Figure 4-1 shows

the key steps in the research approach process.

Page 63: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

50

• What is the opportunity cost of water quality degradation in Ramallah and Al-Bireh governorate?

• Determine scope and objectives

• What is the quality of public drinking water in the Ramallah and Al-Bireh governorate?

• Compile chemical and microbial water quality data for public drinking water sources and perform assessment

• What is the average bottled water consumption in the governorate and what are some perceptions of residents regarding the public

drinking water?

• Gather information on the bottled water industries and water filters industry in the governorate

• Carry out survey

• Obtain indicator values

• What is the expenditure on drinking water supplies and how does this translate as the opportunity costs?

• Quantify/value the costs, opportunity costs, future costs

Figure 4-1 Key Steps in the Research Approach Process

Page 64: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

51

4.2 Data Collection

Secondary data was primarily collected through desk-based research, where data was obtained

from electronic databases, libraries, and scholarly articles and books. The so-called „ancestry

approach‟, in which references from key papers are systematically traced, was also used. The

data used for the public water quality assessment was gathered and assembled from several

sources, mainly the databases of the Palestinian Water Authority, Jerusalem Water Undertaking,

and the Central Public Health Lab of the Palestinian Ministry of Health. Interviews were held

with officials from these institutions to pursue in-depth information about the topics and to

identify gaps and questions which can be tackled through this research.

The field-study consisted of a survey of fourteen bottled water companies and/or suppliers,

which offer bottled water in the Ramallah and Al-Bireh governorate market. A list of these

companies, with contact information, was obtained from the Ministry of National Economy.

Interviews were arranged with the directors, mangers and/or technicians of each company. The

„general interview guide approach‟ was adopted, which is an interview approach that intends to

ensure that the same general areas of information are collected from each interviewee. This

method was selected because it is more structured than the informal conversational interview

(Turner, 2010), and provides more focus than the conversational approach but still allows some

adaptability in getting the information from the interviewee.

The same approach was adopted to gather information from the water filter dealers. In this case it

was more difficult to obtain a list of all the dealers. According to the Ministry of National

Economy, no such list exists because water filter suppliers are not registered under a specialized

company name, rather many are registered under a „general trading‟ company name, which deals

with many products, including the filters. Therefore, interviews were arranged with the managers

Page 65: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

52

of one of the main water filter dealers in the governorate, which supplies units to many smaller

companies, and with the managers of a number of water filter companies, identified through

local listings.

To gather supplementary data on consumers‟ intentions, behavior, attitudes and opinions

regarding their drinking water supplies, an unstructured questionnaire was prepared and

distributed to 155 households, which were selected randomly. The sample size was selected

based on adopted scientific procedures for selection of the appropriate sample size in survey

research as follows:

𝑛 = 𝑁

1 + 𝑁𝑒2

Where n is the sample size, N is the number of households in the Ramallah and Al-Bireh

governorate and e is the level of precision. The level of precision, or sampling error, is assumed

to be ±8 percent, the confidence or risk level is selected at 2, which indicates the maximum

variability in a population. This gives the sample size as follows:

𝑛 = 49,676

1 + (49,676)(0.08)2

𝑛 = 155

The questionnaires were distributed evenly over the urban and rural areas of the governorate to

justly reflect the behaviors and opinions of the different regions of the governorate. The

questions asked aimed to gather information on:

- Type of water consumed in the household (tap, bottled or filtered water).

Page 66: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

53

- Reasons for consuming that water type.

- Amount of water consumed for drinking purposes only.

- Satisfaction of the water consumed.

The main purpose of the questionnaire is to obtain indicator values of the proportions of

residents in the Ramallah and Al-Bireh governorate consuming different types of water, in order

to estimate the household expenditures on drinking water, to better understand perceptions

regarding public drinking water, and to provide an estimate of the average bottled water

consumption in the Ramallah and Al-Bireh governorate. The questionnaires were distributed to

university students, government officials, employed persons, housewives, and random members

of society, etc., through direct, face-to-face interviews and through phone interviews. Open

format questions, which are those questions that give an opportunity for people to express their

opinions, were asked to solicit true, insightful and even unexpected suggestions.

4.3 Analytical Procedures

The analysis adopted in this research was generally inspired by the „averting behavior method‟.

The averting behavior method begins with the notion that people try to protect themselves when

faced with environmental risk thus requiring expenditures that would not be made if not faced

with the environmental health risk. The averting behavior method in practice is outlined by

Sarraf et.al, (2004) where the application of this approach to valuation is based on the

assumption that individuals recognize the existence of a hazard and take actions to avoid it. The

steps to be followed in the analysis are:

1. Identification of the environmental hazard and the affected population

2. Observation of the responses of individuals

3. Measurement of the cost of taking actions

Page 67: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

54

There are however important limitations to this method. Individuals may undertake more than

one form of averting behavior in response to an environmental change and the averting behavior

may have other beneficial effects that are not considered explicitly (Birol, et. al., 2006). For

example, the purchase of bottled water to avoid the risk of consuming polluted supplies may also

provide added taste benefits. This limitation is mitigated in this study, as described below.

This study thus begins with an analysis of the public water quality in the Ramallah and Al Bireh

governorate. Data was gathered for the past 10 years, between 2000 and 2010, from the

Palestinian Water Authority, Jerusalem Water Undertaking, and the Central Public Health Lab of

the Palestinian Ministry of Health. The chemical and microbial water quality data which was

collected is analyzed and compared against Palestinian Standards Institute guidelines and

standards for drinking water. The water quality data which was analyzed consists of chemical

parameters (including Ca, Mg, Na, K, Cl, HCO3, SO4, NO3), physical parameters (including total

hardness, TDS, EC, pH) and microbiological parameters (mainly total coliform, fecal coliform).

The assessment was carried out for water quality „at the source‟, which includes the Ein Samia

well field, Shibtin Well, and Mekorot connections, and water quality „in the network‟, which

includes sampling points within the municipal water distribution network. The data for water

quality taken at monitoring points within the distribution network of the (CPHL) Ramallah and

Al-Bireh governorate was obtained mainly from the Central Public Health Lab of the Palestinian

Ministry of Health. It is important to note the following in regards to this data from the CPHL:

The laboratory was established in 2002, but the water quality database was organized and

digitized in 2004. Thus, it is difficult to obtain any water quality data before 2004.

Page 68: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

55

In 2004, 2005, and 2006, the terminology for types of water being tested was ambiguous

and inexplicit. The exact location of the water samples collected during these years was not

recorded. For example, water type classified as „Groundwater well‟ does not specify which

well the sample was taken from and water types classified as „Municipal water‟ did not

specify whether the sample was taken from the distribution network, home connection,

water tanks, etc. making is impossible to differentiate. In this case, more explicit data was

adopted for the groundwater wells from the JWU, and the municipal water was assumed to

mean samples from the water distribution networks.

In 2007, the CPHL created a comprehensive and explicit „water quality sampling data

sheet‟, to allow proper classification of water sample types.

It has been noted in literature that the costs associated with monitoring the many parameters that

influence water quality, when compared to those associated with monitoring only a few water

quantity variables, usually means that water quality monitoring is not undertaken as frequently as

water quantity monitoring (Rogers et al, 1998). This was observed in the data collection phase

since much of the data gathered was not comprehensive enough to include measurements for all

the major parameters, at all the monitoring points, throughout the years. For example, the

majority of water quality data for the sources was obtained from the Jerusalem Water

Undertaking, and the some of the missing data was found in the Palestinian Water Authority,

though altogether there still remains to be some major gaps, as will be noticed in the graphs.

The water quality assessment answers the first research question regarding the quality of public

drinking water in the Ramallah and Al-Bireh governorate and identifies whether or not there

actually is an environmental hazard of water quality degradation.

Page 69: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

56

The data collected from the bottled water companies is compiled, explored and evaluated to find

the amount of bottled water sold and to estimate the volume of the bottled water market in the

governorate. The data collected from water filter companies is gathered and analyzed to

determine the types of water purification apparatuses available in the Palestinian market, and to

calculate the average cost for installation, operation and maintenance of these apparatuses.

The method for calculating the averted expenditure on bottled water is adopted from the research

report „Cost of Environmental Degradation- The Case of Lebanon and Tunisia‟ carried out by

Sarraf et. al. (2004). In this report, a method for determining this type of expenditure is

developed and applied. This report also applies the concepts and methods outlined in the manual

„Estimating the Cost of Environmental Degradation- A training manual‟, which is a result of

several studies undertaken by the Middle East and North Africa Department on estimating the

monetary value of environmental degradation in eight countries in the region. The method for

calculating the averted expenditure on bottled water assumes that since bottled water

consumption is most likely to be avertive behavior to avoid risk of illness from inferior quality

tap water and in part is also a preference (taste, accessibility, etc), the quantity associated with

choice of preference is estimated by adjusting for GDP per capita differentials and price

differentials between several European countries (in the 1970s) and Ramallah and Al-Bireh

governorate (using income elasticities of demand of 0.25 to 0.40 and price elasticities of demand

of -1.5 to -2.0). The difference between the actual quantity of consumption and the estimated

quantity associated with preferences is the estimated quantity associated with avertive behavior

to reduce the risk of waterborne illnesses.

Page 70: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

57

The estimate of "expected" bottled water consumption if consumers perceived no health risk of

potable municipal water is estimated by adjusting consumption levels of bottled water in several

European countries in the 1970s before the doubling and tripling in consumption that resulted in

large part because of perceptions of increased health risk of potable municipal water. The

European consumption level in the 1970s is adjusted to Ramallah and Al-Bireh governorate‟s by

applying the income elasticities of demand and the price elasticities of demand according to the

formula:

𝑄 = 𝑄𝑒𝑢 ∗ 𝑌

𝑌𝑒𝑢 𝑒

∗ 𝑃

𝑃𝑒𝑢 𝑒 ′

Where Q is expected consumption level in Ramallah and Al-Bireh governorate, Qeu is

consumption level in the European countries in the 1970s, Y is GDP per capita in Palestine, Yeu is

GDP per capita in 1975 in the European countries, e is income elasticity of demand, P is bottled

water prices in Ramallah and Al-Bireh governorate, Peu is bottled water prices in the European

countries, and e' is price elasticity of demand. The bottled water expenditure to protect against

risk (avertive behavior) is then the actual expenditure minus the expected expenditure on bottled

water due to non-risk reasons (such as preference, taste, accessibility, etc.).

The aggregated data from the company surveys and questionnaires is used to find the total

expenditure on drinking water supplies (other than public water) for the year 2009. The total

expenditure is calculated as follows:

Total Expenditure on Drinking Water Supplies =

Total expenditure on bottled water + Total expenditure on water purification apparatuses

Where the total expenditure on bottled water and water purification apparatuses is calculated

from the data gathered from the companies and based on proportions found in the questionnaire.

Page 71: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

58

The notion of opportunity cost is fundamental to decision-making, and it involves the

comparison of the „worth‟ of a given choice and the value of the scarified choice, where the latter

is expressed in terms of the cost of making the given choice (Bateman et. al., 2002). Thus, based

on the calculated expenditure on the different drinking water supplies, the opportunity cost of

each type is calculated.

The total present expenditure is projected into the future to see what this present value will be

worth in the future 10 or 20 years. The future value is calculated based on the compounding

interest equation:

Future Value = Present Value (1 + i ) n

Where i represents the growth rate per year and n represents the number of years. The growth

rate i is calculated by taking into account the population growth and market growth rates.

Summary

The methods outlined in this chapter will provide guidance for the research carried out within

this study. The next chapter will apply these methods and will offer additional details for the

adopted methods within this research.

Page 72: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

59

CHAPTER FIVE RESULTS AND DISCUSSION

This chapter discusses the results of the public water quality analysis carried out for the

Ramallah and Al-Bireh governorate. The results of the field visit to the bottled water companies

and filter dealers are discussed in the next sections, followed by a discussion of the

questionnaire.

5.1 Public Water Quality Assessment

One of the keys for successfully understanding the phenomenon of the booming bottled water

industry in Ramallah is to undergo an assessment of the public water quality in the area, to be

able to understand why bottled water is increasingly being consumed. Water quality

measurements are essential for demonstrating the comparability of data obtained and water

quality assessments worldwide. Quality tests for various types of physical, chemical and

biological contaminants in drinking water also provide the data for necessary quality control

tools. Water which is potable for human use can be described as that water which does not pose

any threat to the health of a human being over its prolonged use over a human lifetime, water

which does not contain any color, taste, smell or suspended material, and does not contain any

chemical, organic or biological matter which may cause harm to humans (WHO, 2008). Water

may contain a number of elements and salts in limited amounts which may be beneficial to the

human body. For these reasons, water is treated and tested to ensure that it is safe and healthy for

consumption. Water pumped at the sources from Ein Samia wells is treated by chlorination,

while water from the Mekorot connections is already treated and ready for consumption.

Page 73: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

60

To reach a reasonable and comprehensive assessment of water quality in Ramallah- Al Bireh

governorate, it is important to assess the water quality „at the source‟, which includes the Ein

Samia well field, Shibtin Well, and Mekorot connections, and to assess the water quality „in the

network‟, which includes sampling points within the municipal water distribution network. This

should provide a view of the quality of water at all points, i.e. the source and the network before

reaching the end user.

5.1.1 Chemical and Physical Water Quality Parameters Measured at the Sources

Based on the data collected from the PWA, CPHL and JWU, the main chemical and physical

parameters were plotted against the PSI standard values to analyze the compliance of municipal

water with the PSI drinking water standards. This is depicted in the graphs below, Figure 5-1, for

the major drinking water parameters.

The sources of drinking water for Ramallah and Al-Bireh governorate, as of 2009, which were

analyzed are:

1. Ein Samia well no. 1

2. Ein Samia well no. 2

3. Ein Samia well no. 3

4. Ein Samia well no. 4

5. Ein Samia well no. 6

6. Shu‟fat connection (Mekorot water supply point)

7. Ramallah connection (Mekorot water supply point)

8. Doleb connection (Mekorot water supply point)

9. Umm Saffa connection (Mekorot water supply point)

Page 74: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

61

Figure 5-1 Major chemical and physical parameters measured at the sources

Source: Compiled data from PWA, CPHL, and JWU.

Page 75: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

62

Figure 5-1 Major chemical and physical parameters measured at the sources (cont.)

Source: Compiled data from PWA, CPHL, and JWU.

Page 76: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

63

Figure 5-1 Major chemical and physical parameters measured at the sources (cont.)

Source: Compiled data from PWA, CPHL, and JWU.

Page 77: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

64

Figure 5-1 Major chemical and physical parameters measured at the sources (cont.)

Source: Compiled data from PWA, CPHL, and JWU.

Page 78: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

65

It is shown that all the major parameters which have occurred in the water samples taken at the

sources, range within or below the maximum allowable limits, according to the PSI standards.

Two exceptions can be noticed:

1) Potassium levels from the Shu‟fat connection exceed the maximum allowable limit in 2002.

No specific reason was found for this increase. According to the WHO, potassium is an

essential element in humans and is seldom, if ever, found in drinking water at levels that

could be a concern for healthy humans, but it can occur in drinking-water as a consequence

of the use of potassium permanganate as an oxidant in water treatment. Thus, adverse health

effects due to potassium consumption from drinking-water are unlikely to occur in healthy

individuals (WHO, 2009).

2) Turbidity levels in 2004 at all the Ein Samia wells exceed the maximum allowable limit in

2004. According to hydro-geologists from the PWA, some possible explanations for the

increase in turbidity in that year can be attributed to:

Over abstraction from the wells, which promotes the release of sediments and fine particles

into the water as it is being pumped;

Reduced rainfall causing reduced recharge, in that lower rainfall leads to an increase in

solubility of some minerals and ions into the surrounding formation to dissolve in water;

Earthquake, or slight shifting of tectonic plates, causing a „stir‟ in the groundwater.

5.1.2 Chemical and Physical Water Quality Parameters in the Network

If water testing is performed only at sources in such settings, then results of monitoring may not

reflect the quality of water actually consumed in the home (Wright et al, 2004), so it was

important to consider this in the water quality assessment. The results are shown in Figure 5-2.

Page 79: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

66

Figure 5-2 Major chemical and physical parameters measured in the network

Source: Compiled data from PWA, CPHL, and JWU.

Page 80: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

67

Figure 5-2 Major chemical and physical parameters measured in the network

Source: Compiled data from PWA, CPHL, and JWU.

Page 81: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

68

Figure 5-2 Major chemical and physical parameters measured in the network

Source: Compiled data from PWA, CPHL, and JWU.

From the above assessment of chemical and physical parameters in water samples taken at the

sources and from within the distribution network, it can be seen that all major parameter values

fall within the PSI standard values for drinking water. One exception is noticed regarding the

turbidity, where it ranged between 0-0.8mg/L between the years 2000-2010 (the PSI limit is

1mg/l), but was measured at 2 mg/L in 2004. High turbidity in drinking water means that it may

not be acceptable for consumers due to high amounts of sediments, possibly sand and other

unappealing matter. The turbidity returned to acceptable limits in the following years.

Calcium values were found to range between 20-79 mg/L, where the PSI limit is 100 mg/L.

Calcium is an essential part of the human diet and according to the WHO there are no health

objections to high calcium content, if it should occur, in drinking water, however the PSI did

specify a maximum limit of 100 mg/L to prevent excessive scale formation. Chloride was found

to range between 25-190 mg/L at the sources and 125-159 mg/L in the network (PSI limit is

Page 82: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

69

250mg/L). Increased chloride values, over 250 mg/L may inflict a salty taste to water, but most

people will not be able to detect the salty taste if chloride values are below 150mg/L. Too high or

too low values of fluoride in drinking water may be harmful for human consumption. Values of

fluoride were found to range from 0.1-0.85 mg/L which is within the allowable PSI limits.

Potassium values ranged from 1-6 mg/L, which are within PSI limits of 10 mg/L, with an

exception in 2002 where it averaged 13mg/L, but this does not pose any direct harmful effects on

human health (WHO, 2009). Magnesium values ranged from 18-42 mg/L (PSI limit 100 mg/L)

and sodium values ranged from 10-80 mg/L (PSI limit 200 mg/L). Both magnesium and sodium

may impart a salty taste to water if they occur above the allowable limits. Nitrates averaged

between 0-28 mg/L (PSI limit 50 mg/L) and sulphates ranged from 0-70 mg/L (PSI limit 200

mg/L). TDS, another indicator of the taste of water, ranged between 200-600 mg/L (PSI limit

1000 mg/L). pH values were found to be within acceptable limits, measured between 7.0-8.3

mg/L (PSI limit 6.5-8.5 mg/L). The total hardness, which relates to aesthetic characteristics and

scaling affects in water, was found to range between 180-380 mg/L in the sources and was found

to measure up to 420 mg/L in the network, where the PSI limit is 500 mg/L, so it is also within

the allowable limits.

5.1.3 Microbial Analysis of Public Drinking Water

Table 5-1 below provides a summary of microbial tests performed by the Jerusalem Water

Undertaking at the sources and within the network, through the years 2000 to 2009. The number

of tests performed is classified as number of tests passed and number of test failed. The

calculation of „percent passing‟ is described by the PSI Drinking Water Standard, sections 4-1-1,

4-1-2 and 4-1-5, which state that “95% of the water samples, which must be taken from the same

source within a period of 12 months, must comply by the stated biological specifications”. This

Page 83: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

70

includes “the Total Coliform in the water sample must not exceed 3/100 ml” and “the Total Fecal

Coliform in the water sample must not exceed 0/100 ml”. Figure 5-3 shows that from 2000 to

2009, all the microbial tests performed passed the PSI value of at least 95% of test must be

passing. This shows that based on the data, the water sources serving the governorate are

microbially safe for drinking purposes.

Table 5-1 Summary of microbial tests performed from 2000-2009

Year Total number of tests

(Coliform bacteria)

Number of tests

passed

Number of tests

failed

% passing

2000 660 656 4 99.4

2001 519 517 2 99.6

2002 414 411 3 99.3

2003 416 414 2 99.5

2004 556 554 2 99.6

2005 795 786 9 98.9

2006 905 893 12 98.7

2007 845 844 1 99.9

2008 828 826 2 99.8

2009 805 804 1 99.9 Note: Membrane Filtration method used.

Note: WHO standards limits % passing not less than 95% within a 12 month sampling period.

Source: Department of Testing and Analysis, Jerusalem Water Undertaking- Ramallah District, 2010

Figure 5-3 Summary of coliform tests from 2000 to 2009

92

93

94

95

96

97

98

99

100

101

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

% P

ASS

ING

YEAR

% passing PSI minimum allowable limit

Page 84: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

71

5.2 Bottled Water Industry Analysis

The bottled water industry in Palestine is a new and rapidly growing industry. A summary of the

data gathered through the field visits which were carried out to the fourteen bottled water

companies and or suppliers is provided in Appendix 2. The number of bottled water providers in

Ramallah and Al-Bireh governorate has increased over the years, from 1996 (when there was

only one company) to 2010 (when there is about 13 companies), as it is shown in Figure 5-4.

Figure 5-4 Bottled water providers in the Ramallah and Al-Bireh governorate

Of the current bottled water providers, 4 companies offer the bulk (19 L) containers and about 10

other companies offer the 0.5 L and 1.5 L and 2 L bottles. Information gathered from the

companies shows that the Ramallah and Al-Bireh governorate is one of the highest consumers of

bottled water compared to other governorates in the West Bank. Generally, all companies stated

that the highest demand for bottled water is in the urban areas of the governorate, mainly in

0

2

4

6

8

10

12

14

1996 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Nu

mb

er

of

bo

ttle

d w

ate

r p

rovi

de

rs

Year

Bottled Water Providers in Ramallah and Al-Bireh Governorate

Page 85: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

72

Ramallah city, Al-Bireh, and Birzeit. All companies noted an increase in the demand for bottled

water since their year of establishment, but this has been difficult to monitor due to the

increasing competition. Statistics from one company show that sales nearly tripled since its

establishment in 1999, when it was the only bulk bottled water provider serving the Ramallah

region.

Figure 5-5 Sales from the first bulk bottled water provider in the Ramallah region

In general, sales data from bottled water companies showed that bottled water sales in the winter

are about one third of the sales in the summer. Therefore, it can be inferred that the purchasing of

bottled water is not solely a reaction to the public water shortages in the summer months.

5.2.1 Comparison of Quality versus Cost

To provide a comparison of the drinking water providers in the governorate, Table 5-2 was

prepared. This table shows some of the main water quality parameters, as provided by each

source, and the related cost of one cubic meter of water. From the first glance, it is obvious that

there is a huge difference in the cost of public water, which costs about 4.1 NIS per cubic meter

0

20000

40000

60000

80000

100000

120000

1999 2000 2001 2002 2003 2004 2005

Nu

bm

er o

f b

ott

les

sold

Year

Bottled Water Sales (19L. container)

Page 86: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

73

for the first 10 m3 and the cost of bottled water, which ranges from about 700 NIS to 1,600 NIS

per cubic meter. So what exactly is the consumer paying for with this huge price difference?

A comparison between, for example, the public water source and bottled company number 1

shows that for an extra cost of 1,838 NIS/m3, one receives water with 52.4 mg/l less sodium

(which gives the water a slightly less salty taste), 21.52 mg/l more Ca (which may be considered

healthy for humans but may increase the hardness), 4.99 mg/l less Mg, 28.11 mg/l less SO4, 9.54

mg/l more NO3, 0.45 mg/l more F, 77.58 mg/l more Cl, 188.3 mg/l less TDS (also giving the

water a less salty taste), and the same pH value.

It is also worth noting the differences in cost and quality between the different bottled water

companies. In comparing company 6 and 8, which are both 1.5 L bottled water producers,

company 6 will cost 611.1 NIS more for every cubic meter purchased, but will offer 13.3 mg/l

more sodium, 11.85 mg/l more calcium, 14.04 mg/l more magnesium, 9.5 mg/l less sulphate,

18.77 mg/l more nitrate, 0.12 mg/l less fluoride, 14.99 mg/l more chloride, 115 mg/l more TDS

and just about 1 pH higher.

A discussion of the health benefits or detriments associated with the higher or lower values of

these measured parameters is beyond the scope of this study, but table 5-2 does point out that all

types of water conform to Palestinian drinking water standards for acceptable and healthy

drinking water. Thus, there is a significant difference in cost for essentially the same healthy,

acceptable drinking water.

Page 87: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

74

Table 5-2 Comparison of bottled water providers in the Ramallah and Al-Bireh governorate

Parameter

(mg/l)

Public

Water

Source

19 L containers 1 ½ L bottles

1* 2 3 4 5 6 7 8 9 10 11 12 13 14 PSI

standard

Na 71.7 19.3 44.62 26.6 30 9.9 25.3 3 12 46 23 27 14 12 12 200

Ca 41.18 62.7 29.92 74.5 35 20 75.85 20 64 62 38 50 66 64 64 100

Mg 30.49 25.5 14.42 28.6 22 9.5 28.7 18 14.66 31 16 25 27 14.66 14.66 100

SO4 39.71 11.6 10 28.2 12 9.9 24.5 <0.1 34 28 10 23 12 34 34 200

NO3 3.36 12.9 2.39 12.3 10 - 26.3 0.4 7.53 33 16.4 - 17 7.53 7.53 50

F 0.68 0.23 0.198 0.33 0.2 0.08 0.2 0.05 0.32 - 0 - - 0.32 0.32 1.5

Cl 105.08 27.5 68.52 37.2 50 - 50 72 35.01 80 50 - 25 35.01 35.01 250

TDS 458.3 270 220 320 250 - 390 163 275 - - 300 - 275 275 1,000

pH 7.8 7.75 7.5 7.6 7.5 - 8.36 7.2 7.4 7.9 - - 7.5 7.4 7.4 6.5-8.5

Cost

(NIS/m3)

4.1 1842.1 1052.6 1578.9 1052.6 1333.3 1333.3 1333.3 722.2 1333.3 833.3 1333.3 2000 1000 1000

*Note: Names of the bottled water companies (providers) have been replaced with numbers.

Page 88: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

75

5.3 Water Filter Industry Analysis

The domestic water purification apparatuses being marketed in the Palestinian market have

caused a stir with many people. Vigorous marketing efforts have been adopted by some

companies, in which company representatives test water samples from a potential client‟s home

then purposely scare them into buying the units. It is very difficult to obtain list of all the water

filter dealers in the governorate due to the fact that most of these dealers are not registered under

a company name indicating that they sell these filters. In the Ministry of National Economy,

companies selling water purification systems are mostly registered under „general trading‟

classification, so it would be extremely difficult to pinpoint the ones selling these systems.

Through a field study, it was found that the types of water filtration systems available in the

Palestinian market are:

o 1st-stage filter: Polypropylene filter cartridge, 5 micron opening, which removes sand,

silt, dirt, and rust particles.

o 2nd

-stage filters: Carbon block cartridge, 5µm nominal sediment filter, which removes

chlorine, bad taste and odor, and organic chemicals from water, while providing filtration

capabilities and dirt-holding capacity.

o 3rd

-stage filter system: This system is made up of one polypropylene filter cartridge and

two carbon block cartridges, set up consecutively.

o 4th

-stage filter system: This system is made up of one polypropylene filter cartridge, two

carbon block cartridges, and a membrane set up consecutively. The membrane may be

one of:

Page 89: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

76

- Microfiltration membranes, which have a nominal pore size of 0.2 microns, are capable of

removing suspended solids, bacteria or other impurities.

- Ultrafiltration membranes, which have a nominal pore size of 0.0025 to 0.1 microns, capable

of removing salts, proteins and other very fine particles or other suspended matters.

- Nanofiltration membranes, which can separate very fine particles or other suspended matters,

with a particle size in the range of approximately 0.0001 to 0.005 microns, and is capable of

removing viruses, pesticides and herbicides.

o 5th

-stage filter system: Reverse Osmosis Filter, made up of a sediment filter, 2 carbon

filters, RO membrane, post carbon filter. RO is the finest available membrane separation

technique and separates very fine particles or other suspended matters, with a particle size

up to 0.001 microns, so it is capable of removing metal ions and fully removing aqueous

salts.

o 6th

- stage filter system: This system adds to the 5th

-stage system a UV-radiation unit to

kill germs and bacteria and fungi.

On average, the costs of these systems are:

- 1st –stage: Initial cost = 150 NIS; Routine cost = 40-60 NIS/year

- 2nd

-stage: Initial cost = 250 NIS; Routine cost = 70-100 NIS/year

- 3rd

-stage: Initial cost = 400 NIS; Routine cost = 70-100 NIS/year

- 4th

-stage: Initial cost = 500 NIS; Routine cost = 70-100 NIS/year

- 5th

-stage: Initial cost = 1800 NIS; Routine cost = 200-250 NIS/year

- 6th

-stage: Initial cost = 3000 NIS; Routine cost = 200-250 NIS/year

Page 90: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

77

Filter companies have stated that sales are also on the rise. One of the main water filters dealers

in the year 2000 sold 200 filters units, in 2005 sold 2000 units, and in 2009 sold about 3000 units

in the Ramallah and Al-Bireh governorate alone.

5.4 Questionnaire Analysis

As outlined in Chapter 4, 155 questionnaires were distributed among residents of the governorate

of Ramallah and Al-Bireh to obtain indicator values of the proportions of residents consuming

different types of water, to estimate the household expenditures on drinking water, to better

understand perceptions regarding public drinking water, and to provide an estimate of the

average bottled water consumption in the Ramallah and Al-Bireh governorate. Results of the

survey showed that 32.0% of the sample drink bottled water, 37.4% drink tap water, 11.3% have

installed a water filter and drink from the filtered water, 14.0% drink both tap and bottled water,

2.0% drink both bottled and filtered water, 0.6% drink both tap and filtered water, and 2.7%

drink from other sources which include private rainwater cisterns, private springs, etc..

Figure 5-6 Distribution of types of drinking water Source: Questionnaire

32.0%

37.4%

11.3%

14.0%

0.6% 2% 2.7% Bottled water

Tap water

Filtered water

Tap and Bottled water

Tap and Filtered water

Bottled and Filtered water

Other (rainwater cistern, spring, etc.)

Page 91: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

78

It was found that 11.3% of the sample has installed a point-of-use water filter at their taps. The

average capital cost for the installed water filters was about 1,400 NIS. About 58% of the

respondents had installed multi-stage filters, with an average cost of about 2,000 NIS, 32%

installed a standard 1-2 stage filter, with an average cost of 315 NIS, and 11% did not know what

type of filter they had installed.

The results of the questionnaire showed that of the bottled water consumers, their average bottled

water consumption is about 259.7 liters per capita per year, or about 0.71 liters/capita/day. Of

these bottled water consumers, the highest consumption was 864 l/c/yr (2.37 l/c/d) and the lowest

consumption was 67.5 l/c/yr (0.18 l/c/d).

It is important to note that the questionnaire results showed about 32% of the sample drink only

bottled water and this result seems somewhat high and may be attributed to the following

reasons: the sample size taken was not large enough to be representative of the actual population;

the answers of some respondents may not have been entirely accurate; the precision may not

have been high enough.

Another aim of the questionnaire was to better understand the perceptions of consumers of

different water types. The reasons stated by respondents for their selection of drinking water type

in their homes are displayed in the Figure 5-7.

When asked „Why do you choose to drink (tap/bottled/filtered water), the responses showed that

the greatest reason for not drinking tap water among bottled water consumers is there is a lack of

Page 92: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

79

trust of the supplied tap water. The majority of filtered water drinkers felt that their tap water is

unclean. Over half of tap water drinkers felt that their water was clean and felt no reason to resort

to any other type.

About 33% of consumers of both tap and bottled water regularly drink tap water and only

purchase bottled water when they feel their tap water tastes bad, during and/or after water cuts.

This is due to the fact that during or after a prolonged water cut, sediments from the roof tanks

reach the tap causing a change in taste and color. About 24% stated that there is a difference of

opinions inside the household, where some members had no problem drinking tap water while

others preferred to drink bottled water, and 14% of the households stated that drinking bottled

water alone is too expensive so these household consumed both. Consumers of both bottled

water and filtered water felt that either bottled water alone was too expensive or that bottled

water is more accessible than the tap/filtered water.

Generally speaking, about 48% of the respondents do not drink tap water while about 52% will

drink tap water, regardless of their preference. In summary, it can be said that there are

conflicting perceptions of the public drinking water in the Ramallah and Al Bireh governorate.

Page 93: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

80

Figure 5-7 Respondents’ reasons for water type selection

15%

81%

2% 2%

Bottled Water Consumers

Distrust of tap water

Bottled water is cleaner/Better taste and colorBottled water has low sodium

Storage tanks are contaminated

55%

7%5%

13%

20%

Tap Water Consumers

Tap water is clean

Tap water has better taste than other waterTrust

It's cheaper/ can’t afford otherNo reason

65%6%

6%

12%12%

Water Filter Consumers

Tap water is dirty

Distrust of tap water

Bad taste of tap water

Due to marketing effort

Less expensive than bottled wter

Page 94: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

81

Figure 5-7 Respondents’ reasons for water type selection (cont.)

5.5 Economic Analysis

The data collected throughout this research with the aggregated results of both the survey of

bottled water companies and water filter providers and the questionnaire are employed to carry

out an economic analysis of the situation. The aim of this analysis is to estimate the total

expenditures on drinking water, using the most recent data available, and to monetize the

opportunity cost.

14%

24%

10%33%

5% 14%

Perception of Consumers for Both Tap & Bottled Water

Bottled water is too expensive alone

Difference in opinion within family

Bottled water is purchased for children only

Bottled water purchased when tap water tastes bad/during or after water cutsBottled water is purchased for appliances only

No specific reason

Page 95: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

82

5.5.1 Expenditure on Bottled Water

The total number of bottles sold in 2009 from the bottled water companies and providers

available in the governorate‟s market was found to be as follows:

18.9 L 258,456 bottles

2 L 860,400 bottles

1.5 L 5.22 million bottles

0.5 L 3.84 million bottles

The total volume of bottled water sold in 2009 in the Ramallah and Al Bireh governorate was:

[258,456 * 18.9] + [860,400 * 2] + [5,220,000 * 1.5] + [3,840,000 * 0.5] = 16.35 million liters,

where 4.88 million liters were sold as 18.9 L bottles, 1.72 million liters were sold as 2 L bottles,

7.83 million liters were sold as 1.5 L bottles and 1.92 million liters were sold as 0.5 L bottles.

Considering a population of 279,730 persons (PCBS, 2008), then the bottled water consumption

in the Ramallah and Al-Bireh governorate in 2009 was 58.3 liters per capita.

The average cost of bottled water was calculated by taking the average price of bottles sold in

bulk and as single. The average costs are shown in Table 5-3.

Table 5-3 Average costs of bottled water

Size of bottle (L) Average Price (NIS) Cost per liter (NIS)

18.9 25.0 1.3

2 3.0 1.5

1.5 1.95 1.3

0.5 1.05 2.1

Average cost (NIS/L) 1.55

Average cost ($US/L) ≈ 0.4

Page 96: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

83

The total expenditure on bottled water in 2009 can thus be calculated as follows:

[258,456 * 25] + [860,400 * 3] + [5,220,000 * 1.95] + [3,840,000 * 1.05] = 23.25 million NIS,

or just about $6.25 million US (where US$ 1 = 3.72 NIS). This is equivalent to about $22.3

US/yr.

The bottled water expenditure to protect against risk (avertive behavior) is the actual expenditure

minus the “expected” expenditure (on bottled water for reasons such as preference, taste,

accessibility, etc.). The estimate of "expected" bottled water consumption if consumers perceived

no health risk of potable municipal water is estimated according to Table 5-4. This table provides

the information used to arrive at an estimate for the avertive expenditure on bottled water, and

offers a range of values for the income and price elasticities of bottled water demand, since these

values may exist over a range and are difficult to fix due to lack of concrete data in the region.

Page 97: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

84

Table 5-4 Bottled Water Consumption (Avertive Behavior)

1 See section 2.9

2 See section 5.5.1

3 See table 5-3

4 See section 5.5.1

5 Source: Various sources, as cited by Sarraf et al, 2004

6 Source: MAS, 2010 (see table 2-2)

7 Calculated by: item 4 minus the average of items13 and 14

8 Calculated by: average of high and low values from item 15

9 Calculated by: item 16 multiplied by item 3

Value Units

1. Per capita expenditures in Palestine1 1967 US$/capita/yr

2. Bottled water expenditures in Ramallah and Al-Bireh

governorate (2009)2

22.3 US$/capita/yr

3. Average price of bottled water in Ramallah and Al-Bireh

governorate 3

0.4 US$/liter

4. Bottled water consumption in Ramallah and Al-Bireh

governorate (actual) 4

58.3 Liters/capita/yr

5. GDP per capita 1975 (Western Europe and US) 5 17253 US$/capita

6. GDP per capita 2008 (Palestine) 6 1290 US$/capita

“LOW” “HIGH”

7. Bottled water consumption in several European countries in the

1970s 5

30 30 Liters/c/yr

8. Income elasticity of bottled water demand (“Low” and “High”) 5 0.25 0.4

9. Price elasticity of bottled water demand (“Low”) 5 -1.5 -1.5

10. Price elasticity of bottled water demand (“High”) 5 -2 -2

11. Average price of bottled water in several European countries 5 0.3 0.3 US $/liter

12. Average price of bottled water in Ramallah and Al-Bireh

governorate 3

0.23 0.23 US $/liter

13. “Expected” bottled water consumption in Ramallah and Al-

Bireh governorate: non-risk related (“Low”)

10 7 Liters/c/yr

14. “Expected” bottled water consumption in Ramallah and Al-

Bireh governorate: non-risk related (“High”)

9 6 Liters/c/yr

Protection against risk of waterborne illnesses:

15. Bottled water consumption to protect against risk 7

49.8 51.8 Liters/c/yr

16. Average bottled water consumption to protect against risk 8

50.8 Liters/c/yr

17. Total cost of bottled water consumption to protect against risk 9

$20.3 US$/capita/yr

Page 98: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

85

As it is shown in Table 5-4, the per capita expenditures in Palestine, the bottled water

expenditures in Ramallah and Al-Bireh governorate, the average price of bottled water, and the

bottled water consumption in Ramallah and Al-Bireh governorate are factors which are taken

into consideration within the calculations and are obtained from various sections throughout this

report. The GDP per capita in Western Europe and US in 1975, before the doubling and tripling

in consumption that resulted in large part because of perceptions of increased health risk of

potable municipal water, is compared to the GDP per capita in Palestine for 2008, where it is

assumed that a significant amount of consumption results from perceptions of adverse health

risks. To illustrate the calculations made in Table 5-4, a sample calculation of the “expected”

quantity of bottled water consumption in Ramallah and Al-Bireh governorate, which is non-risk

related, as a result of the „low‟ income elasticity of bottled water demand and „low‟ price

elasticity of bottled water demand is shown as follows:

𝑄 = 𝑄𝑒𝑢 ∗ 𝑌

𝑌𝑒𝑢 𝑒

∗ 𝑃

𝑃𝑒𝑢 𝑒 ′

= 30 ∗ 1290

17253

0.25

∗ 0.4

0.3 −1.5

≈ 10 L.

Where Q is expected consumption level in Ramallah and Al-Bireh governorate, Qeu is

consumption level in the European countries in the 1970s, Y is GDP per capita in Palestine, Yeu is

GDP per capita in 1975 in the European countries, e is income elasticity of demand, P is bottled

water prices in Ramallah and Al-Bireh governorate, Peu is bottled water prices in the European

countries, and e' is price elasticity of demand.

This equation is part of a method adopted by Sarraf et. al. 2004 for estimating the avertive

expenditure on bottled water. The price elasticity of demand is a measure of the rate of response

of quantity demanded due to a price change. It is used to see how sensitive the demand for a

good is to a price change. The higher the price elasticity, the more sensitive consumers are to

Page 99: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

86

price changes, and a very low price elasticity implies that changes in price have little influence

on demand.

The average of the values of “expected” bottled water consumption in Ramallah and Al-Bireh

governorate which are non-risk related and are related to low price elasticity of bottled water

demand is 9.5 L/c/yr and the average of the values which are related to high price elasticity of

bottled water demand is 6.5 L/c/yr. The actual bottled water consumption in Ramallah and Al-

Bireh governorate (58.3 L/c/yr) minus the averages of “expected” consumption is 49.8 L/c/yr

and 51.8 L/c/yr respectively. Thus, the „low‟ value of bottled water consumption to protect

against risk is 49.8 L/c/yr and the high value is 51.8 L/c/yr, the average of which is 50.8 L/c.yr.

Based on the amount of average bottled water consumption to protect against risk (50.8

L/c/year), the total expenditure on bottled water to protect against risk is:

(50.8 L/c/year) * (1.55 nis/L) * (279730 capita) = 22.0 million NIS/yr, or 78.7 NIS/c/yr.

5.5.2 Expenditure on Water Purification Apparatuses

The results of the questionnaire showed that a total of 13.9% of households in the governorate

have installed water filters. This includes the households which drink filtered water exclusively,

households which drink both bottled and filtered water, and households which drink both tap and

filtered water, which are 11.3%, 2.0% and 0.6% of the total sample respectively. Of these

households, 80% are living in urban areas and 20% are living in rural areas. Therefore, 11.12%

of households with filters are located in urban areas and 2.78% of households with filters are

located in rural areas. In the Ramallah and Al-Bireh governorate, there is a total of 27,182

Page 100: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

87

households in urban areas and 19,750 households in rural areas (PCBS, 2008). The estimated

number of households with filters can then be estimated as:

[27,182 * 0.1112] + [19,750 * 0.0278] = 3,572 households with filters in the governorate,

where 3023 households are located in urban areas and 549 households are located in rural areas.

Responses from the questionnaire showed that the average capital cost of the water filters

installed is 1,400 NIS and the average operation and maintenance cost is about 261.5 NIS/year.

As the technical life of the filtration apparatus is limited, the routine cost for operation and

maintenance, needed for the upkeep of the apparatus over its service life, is added to the capital

cost, needed for the provision of the apparatus. The annual cost for investment, operation, and

maintenance is calculated to account for the depreciation rate, where:

Depreciation rate (d) = 1/n *100% (n=service life)

Assuming that the service life of the average water filter is 10 years, the depreciation (based on a

fixed annual rate) is 10% (1/10*100%) per year.

The annual costs to be paid by user are:

Operation and maintenance: 261.5 NIS/year

Depreciation: 0.1 * 1400NIS = 140 NIS/year

The total annual cost is thus 401.5 NIS/household (261.5 NIS + 140NIS).

The total expenditure on water purification apparatuses in the Ramallah and Al-Bireh

governorate can be calculated as follows:

[3,572 households] * [401.5 NIS per household per year] = 1.43 million NIS.

Page 101: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

88

Another illustration of future costs associated with the capital investment and routine costs of

water filtration apparatuses, by taking into consideration the time value of money, is by adding

the present value (PV) of the routine cost, over the service life, to the initial investment. The

present value is equivalent to a present sum, which invested with a compound interest, is equal to

a future cost:

𝑃𝑉 = 𝐶 ∗ 1−(1+𝑖)−𝑛

𝑖

Where C is the routine cost (assuming equal annual cost for operation and maintenance over the

entire service life), i is the interest rate, and n is the service life. The routine cost C is 261.5

NIS/year, the interest i is assumed to be 7% (based on general knowledge of Palestinian banks),

and the service life is 10 years. The present value of the investment is 1400 NIS. The present

value of the routine cost is calculated as follows:

𝑃𝑉 = 261.5 ∗ 1−(1+0.07)−10

0.07 = 1837 NIS

The present value of the total cost = 1400 + 1837 = 3237 NIS per unit household.

5.5.3 Total Expenditure on Drinking Water

Based on the results found in sections 5.5.1 and 5.5.2, the total averted expenditure on drinking

water supplies in 2009 can be calculated as follows:

Total Expenditure on Drinking Water Supplies =

Total averted expenditure on bottled water + Total expenditure on water purification apparatuses

Total Expenditure on Drinking Water = 22.0 million NIS + 1.43 million NIS

= 23.43 million NIS.

Page 102: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

89

Therefore, about 23.43 million NIS were expended in 2009 on drinking water supplies other than

the supplied tap water.

5.5.4 Opportunity Cost of Drinking Water Expenditures

The opportunity cost can be considered as the value of what is foregone in order to have

something else, or the cost of foregoing the opportunity to purchase something else. This concept

can be visualized as follows:

The results of the questionnaire showed that the bottled water drinkers consume 0.71 l/c/d of

bottled water. Let‟s assume that the average person drinks 0.71 l/d of water, then the cost for that

amount of tap water is:

0.71 l/c/d * (1m3/1000L) * (4.1 NIS/1m

3) * (365 days/yr) = 1.06 NIS/c/yr

Assuming that the average cost of bottled water per liter is 1.55 NIS/L. (Table 5-3), for that same

consumption, the cost of bottled water would be:

0.71 l/c/d * (1.55 NIS/L) * (365 days/yr) = 402 NIS/c/yr

Assuming that the average cost of a filter over its service life is 401.5 NIS/household/year and

the average household size is 5.3 (PCBS, 2008), then the cost for that same consumption of

water from a filter would be:

[401.5 NIS /5.3] = 75.8 NIS/c/yr

Page 103: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

90

So, for a 1-year period, the average person purchasing bottled drinking water is forgoing the

opportunity to save (402 - 1.06) = 400.94 NIS /yr. The average person who has installed a water

filter is forgoing the opportunity to save (75.8 - 1.06) = 74.74 NIS/yr. These amounts represent

the opportunity costs associated with drinking water expenditures.

5.5.5 Future Value of Total Expenditure on Drinking Water Supplies

To illustrate the concept of the time value of money, and to evaluate the worth of the expenditure

after a given period of time, the value of total expenditure on drinking water can be forecasted

into the future for 10 years or 20 years, using the future value equation:

Future Value = Present Value (1 + i ) n

Where i represents the growth rate per year and n represents the number of years.

To compound the amount of money at a given rate, as a scenario, it is assumed that the

proportion of bottled water and filter consumers remains constant throughout the next 20 years.

The growth rate will be set to include both the yearly natural population growth rate, which is

3%, and the yearly increasing demand for bottled water, which is estimated to be about 10% per

year worldwide (Gleick, 2004). Thus the total growth rate is considered to be 13%. The future

value of the drinking water expenditure in the next 10 years is:

Future Value 2020 = (23.43 *106) * (1 + 0.13)

11

= 89.87 million NIS

Page 104: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

91

The future value of the drinking water expenditure in the next 20 years is:

Future Value 2030 = (23.43 *106) * (1 + 0.13)

21

= 305.08 million NIS

These forecasted values show the value that a sum of money will have in the future, taking into

account the effects of population growth rate and bottled water demand. These future costs will

accrue to future generations if trends continue at the same rates. This brings up the question of

what is the responsibility of policy makers to future generations and whether utility can be

derived from providing benefits to others. These forecasted values also question whether these

expenditures, present and future, can be invested to improve the quality, taste, color, etc. of

public drinking water reaching consumers through rehabilitating main water lines and household

connections and by raising awareness and improving trust among the residents regarding their

drinking water supplies.

Page 105: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

92

CHAPTER SIX CONCLUSIONS AND RECOMMENDATIONS

6.1 Conclusions

Palestine‟s population consumes bottled water mostly due to the perception that public drinking

water is of a low quality, while some consumption is due to taste and lifestyle preferences. In

addition to bottled water consumption to protect against inferior (real or perceived) public water

quality, many households have installed water purification equipment. Water pollution and

possible contamination, or the perception thereof, of public drinking water has a cost to society.

The main objective of this research was to assess the quality of public drinking water in the

Ramallah and Al-Bireh Governorate, and to estimate the expenditure on different drinking water

to monetize the opportunity cost. The compilation and assessment of chemical and microbial

water quality data for public drinking water supplies in the Ramallah and Al-Bireh governorate

showed that generally speaking, the supplied public water in the governorate conforms to the

Palestinian standards for safe and healthy drinking water.

Bottled water consumption in 2009 is estimated at 58.3 liters per capita per year in the Ramallah

and Al-Bireh governorate where about 16.35 million liters of bottled water were sold in total.

Bottled water consumption is in large part likely due to be avertive behavior to avoid perceived

risk of illness from inferior quality tap water and in part is also a preference (taste, accessibility,

etc.). The total expenditure on bottled water in the Ramallah and Al-Bireh governorate was

found to be 23.25 million NIS in 2009, the total averted expenditure on bottled water was

estimated to be 22.0 million NIS and the total expenditure on water purification apparatuses was

found to be about 1.43 million NIS. Thus, the total expenditure on drinking water totaled to

Page 106: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

93

23.43 million NIS. When these expenditures are represented as the opportunity costs, the average

person purchasing bottled water is forgoing the opportunity to save 400.94 NIS/yr, and the

average person who has installed a water filter is forgoing the opportunity to save 74.74 NIS/yr,

which are both costs associated with drinking water expenditures.

This information shows that despite the fact that water quality data, obtained from water

providers, shows that there is no adverse health risks associated with the consumption of public

drinking water, there remains to be perceived health risks among consumers and a significant

amount of money is being spent on avertive actions such as the purchase of bottled water and

installation of tap water filters.

6.2 Recommendations

It is apparent from this research that the general perception of public drinking water being of low

quality is leading many consumers into expending a significant amount of money into

purchasing what is thought to be „better‟ drinking water. It is recommended that public water

providers exert greater effort firstly into maintaining high drinking water quality in the

distribution system of the governorate and secondly marketing this water to the general public to

gain their trust and approval. This can be achieved by providing the public with accurate and

concise annual water quality reports which can be easily accessed and comprehended by the

average population and by providing a transparent monitoring system. It is also essential to raise

awareness among the public on the importance of regular maintaining and cleaning of private

roof and water tanks, checking household connections and fixing leaking or deteriorated pipes to

ensure that the water being supplied to them is not being contaminated as it enters the home.

Page 107: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

94

For residents who perceive a problem with their tap water, it is recommended that home tap

water quality be tested by the proper authorities, such as the Palestinian Water Authority and

Ministry of Health who will carry out a professional testing and will provide an un-biased

assessment, based on which the consumer may make educated decisions regarding their choices

on their choice of drinking water. These actions can undoubtedly raise the level of trust among

residents of the governorate and would eventually reduce their reliance on alternative, more

costly, drinking water supplies. In today‟s economy, the opportunity cost for drinking water

expenditures should be an important consideration and valuable concept to the average

consumer.

For water monitoring institutions and regulators, the following recommendations are derived:

- The labels of locally bottled and internationally imported bottled water must be monitored

more closely to ensure that they conform to PSI bottled water standards (PSI 69-2005).

- The constituents of imported bottled water must be checked to make sure that this water is

safe for human consumption.

- Bottled water must be monitored and analyzed regularly to ensure this it adheres to the

claims made on the bottle labels.

- More information is needed at the regulatory level regarding the industries and products

dealing with drinking water, for both bottled water and filter industries, due to the high

importance and apparent misconceptions regarding this issue.

- Increased information exchange and coordination between the Palestinian Water Authority,

water providers, Ministry of Health, Ministry of National Economy, among others, regarding

the issues of public drinking water and the industries dealing with drinking water.

Page 108: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

95

6.3 Further Research

This study has provided a discussion of water quality issues and bottled drinking water in the

Ramallah-Al Bireh governorate. As with any study, further research is required to reveal

additional information and to take this study to the next level. Some possible further research,

which would elaborate on certain issues mentioned throughout this study, may be as follows:

Study on the socio-economic aspects of bottled water consumption, taking into consideration

factors such as household income, price of bottled water, price of alternatives, preferences,

etc.

Study on household water quality, comparison of quality at the network, in the roof tank, at

the tap.

Study on the quality of filtered water: threats and benefits.

Study on the quality of bottled water compared to drinking water standards and to the bottle

labels; the quality of bottled water after time and storage effects, etc.

Page 109: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

96

REFERENCES

Anayah, F., and Almasri, M., 2009. Trends and occurrences of nitrate in the groundwater of the

West Bank, Palestine. Applied Geography (2009), doi:10.1016/j.apgeog.2009.01.004.

Bateman, I., Carson, R.T., Day, B., Hanemann, W.M., Hanley, N., Hett, T., Jones, A., Loomes,

G., Mourato, S., Ozdemiroglu, E., Pearce, D.W., Sugden, R., Swanson, J., 2002.

Economic Valuation with Stated Preference Techniques- A manual. Edward Elgar Ltd,

Cheltenham, UK, Massachusetts, USA.

Berry, D., Chuanwu Xi and Lutgarde Raskin, 2006. Microbial ecology of drinking water

distribution systems. Elsevier Ltd.

Birol, E., Karousakis, K., Koundouri, P., 2006. Using economic valuation techniques to inform

water resources management: A survey and critical appraisal of available techniques and

an application. Science of the Total Environment 365 (2006) 105-122. Accessed on 15

March 2010 from: http://nersp.nerdc.ufl.edu/~vecy/LitSurvey/sdarticle.pdf.

Bolt, K., Ruta, G., Sarraf, M., 2005. Estimating the Cost of Environmental Degradation- A

Training Manual in English, French, and Arabic. Environment Department Papers, Paper

no. 106. World Bank.

Botto, S., 2009. Tap water vs. bottled water in a Footprint Integrated approach. Nature

Proceedings. United States.

Costanza, Robert, John Cumberland, Herman Daly, Robert Goodland, and Richard Norgaard.

1997. An Introduction to Ecological Economics. St. Lucie/CRC Press. Boca Raton,

Florida. Accessed on 08 May, 2010 from:

http://findarticles.com/p/articles/mi_m2120/is_8_79/ai_53643891/.

Dickie, Phil, 2006. Rich Countries, Poor Water. WWF Global Fresh Water Program.

Netherlands.

Environmental Protection Agency (EPA), 2009. Basic Information about Drinking Water

Contaminants [internet]. Accessed on 16 April 2010 from:

http://www.epa.gov/safewater/contaminants/basicinformation.html.

Environmental Protection Agency (EPA), 2005. Water Health Series- Filtration Facts. Accessed

on 16 April 2010 from: www.epa.gov.

Ferrier, C., 2001. Bottled Water: Understanding a Social Phenomenon. Royal Swedish Academy

of Sciences. Ambio Vol. 30 No. 1

Food and Water Watch (FWW), 2007. Taking back the Tap [internet]. Accessed on 16 April

2010 from: www.foodandwaterwatch.org.

Page 110: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

97

Gilpin, A., 2000. Environmental Economics- A critical overview. Modules in Environmental

Sciences. John Wiley & Sons, LTD, West Sussux, England.

Gleick, P., 2004. The Myth and Reality of Bottled Water. The World‟s Water, the Biennial

Report on Freshwater Resources: 2004-2005. Island Press, Pacific Institute.

Ground Water Summit National Ground Water Association, 2010. Institute for Water and

Watersheds Oregon State University. Accessed on 08 May 2010 from:

http://aquadoc.typepad.com/files/ngwa-bottled-water

session_summary_ngwa_summit_2008.pdf.

Guideline. (2010). In Merriam-Webster Online Dictionary. Retrieved 26 April 2010, from

http://www.merriam-webster.com/dictionary/guideline

House of Water and Environment (HWE), 2009. Report: Assessment of Groundwater

Vulnerability for Ramallah Wastewater Treatment Plant. Ramallah, Palestine

House of Water and Environment (HWE) and Birzeit University, 2006. Background Document

on the Water Environment of the Ramallah- Al Bireh Governorate - Influence of Urban

Development on the Quality of Groundwater, Guidelines Design for Groundwater

Protection. Ramallah, Palestine.

International Council of Bottled Water Associations, 2004. Global Bottled Water Statistics,

2000-2003. Accessed on 08 May 2010 from: http://www.icbwa.org/stats.htm.

Jarvis, T., 2008. Bottled Water Session Summary – 2008 Ground Water Summit. National

Ground Water Association, Institute for Water and Watershed, Oregon State University.

Accessed on 15 March 2010 from: http://aquadoc.typepad.com/files/ngwa-bottled-water-

session_summary_ngwa_summit_2008.pdf

Jerusalem Water Undertaking (JWU), 2006. Water Awareness Publication. Jerusalem Water

Undertaking, Ramallah, Al-Bireh governorate.

Jerusalem Water Undertaking (JWU), 2007. Foundation of JWU. Accessed on 08 April 2010

from: http://www.jwu.org/newweb/etemplate.php?id=96

Keresztes S, et al, 2009. Leaching of antimony from polyethylene terephthalate (PET) bottles

into mineral water. Science of Total Environment.

Krachler, et al, 2008. Trace and ultratrace metals in bottled waters: Survey of sources worldwide

and comparison with refillable metal bottles. Elsevier, Science of Total Environment.

Accessed on 10 April 2010 from: www.sciencedirect.com.

Natural Resources Defense Council (NRDC), 1999. Bottled Water: Pure Drink or Pure Hype?.

Accessed on 18 April 2010 from: www.nrdc.org/water/drinking/bw/ bwinx.asp.

Page 111: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

98

Ng, Yew-Kwang, 2005. Eternal Coase and External Costs: A case for bilateral taxation and

amenity rights. Economics and Environment Network National Workshop, Australian

National University.

Opportunity cost. (2010). In Merriam-Webster Online Dictionary. Retrieved 09 April 2010, from

http://www.merriam-webster.com/dictionary/opportunity cost.

Pacific Institute, 2009. The World‟s Water 2006-2007 Data. Retrieved 09 May 2010, from:

http://www.worldwater.org/data.html.

Palestinian Central Bureau of Statistics (PCBS), 2008a. Meteorological Conditions in the

Palestinian Territory Annual Report 2007. Ramallah - Palestine.

Palestinian Central Bureau of Statistics (PCBS), 2008b. Land Use Statistics in the Palestinian

Territory, 2007. Ramallah - Palestine.

Palestinian Central Bureau of Statistics (PCBS), 2008c. Quantity of Water Supply for Domestic

Sector in the Palestinian Territory by Governorate and Source, 2007, as cited by the

Palestinian Water Authority, 2007. Unpublished Data. Ramallah - Palestine.

Palestinian Central Bureau of Statistics (PCBS), 2008d. Number of Palestinian Water Wells and

it's Annual Pumping Quantity in the Palestinian Territory by Governorate and Use, 2007,

as cited by the Palestinian Water Authority, 2007. Unpublished Data. Ramallah -

Palestine.

Palestinian Central Bureau of Statistics (PCBS), 2008e. Quantity of Water Purchased from

Israeli Water Company (Mekorot) in the Palestinian Territory for Domestic Use by

Governorate and Year, 2003-2007, as cited by the Palestinian Water Authority, 2006-

Water Database. Ramallah, Palestine.

Palestinian Central Bureau of Statistics (PCBS), 2008f. Number of Springs and it's Annual

Discharge in the Palestinian Territory by Governorate and Year, 2005 - 2007, as cited by

the Palestinian Water Authority, 2007. Unpublished Data. Ramallah - Palestine.

Palestinian Central Bureau of Statistics (PCBS), 2008g. Quantity of Water Supply for Domestic

Sector and Population and Daily Allocation per Capita in the Palestinian Territory by

Governorate, 2007, as cited by the Palestinian Water Authority, 2007. Unpublished

Data. Ramallah - Palestine.

Palestinian Central Bureau of Statistics (PCBS), 2008h. Levels of living in the Palestinian

Territory. The Final Report (January 2007 - January 2008). Ramallah - Palestine.

Palestinian Central Bureau of Statistics, 2009. Census Final Results – Population Report-

Ramallah & Al-Bireh Governorate. Ramallah - Palestine.

Page 112: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

99

Palestine Economic Policy Research Institute (MAS), 2010. Quarterly Economic and Social

Monitor Volume 19. Palestinian Central Bureau of Statistics, Palestinian Monetary

Authority. Ramallah, West Bank.

Palestine Economic Policy Research Institute (MAS), 2009. Future Water Needs in Palestine.

Ramallah.

Palestinian Standards Institute (PSI), 2005. Drinking Water Specifications. PSI 41-2005.

Ramallah, West Bank - Palestine.

Palestinian Standards Institute (PSI), 2005. Bottled Water Specifications. PSI 69-2005.

Ramallah, West Bank - Palestine.

Palestinian Water Authority (PWA), 2007. Report: Drinking Water Quality in the West Bank.

Water Quality Testing Department, Palestinian Water Authority.

Porteous, A., 1992. Dictionary of Environmental Science and Technology. John Wiley and Sons,

Chichester.

Richardson, S., 2003. Disinfection by-products and other emerging contaminants in drinking

water. Elsevier Science B.V. Accessed on 10 April 2010 from: www.sciencedirect.com.

Rogers, P., Bhatia, R., and Huber, A., 1998. Water as a Social and Economic Good: How to Put

the Principle into Practice. Global Water Partnership/Swedish International Development

Cooperation Agency- Stockholm, Sweden.

Samhan, S., Friese, K., von Tuempling W., Ghanem, M., Ali, W., Jarrar, A., 2009. Domestic

Water Quality in the West Bank‟s Aquifers, Palestine “Overview on the Major

Parameters”. Second International Conference on Water Values and Rights. Ramallah,

Palestine.

Sarraf, M., Larsen, B., Owaygen, M., 2004. Cost of Environmental Degradation- The Case of

Lebanon and Tunisia. Environmental Economic Series- Paper No. 97. The World Bank

Environment Department.

Snyder, S., Vanderford, B., and Rosario-Oritiz, F., 2009. Iodate and Perchlorate in Bottled

Water: Methods for Discovery and Impact on Humans. Elsevier Inc.

Stockholm International Water Institiute (SIWI), 2005. Making water a part of economic

development- The economic benefits of improved water management and services.

Commission on Sustainable Development, Norway and Sweden.

Turner, D. W., III, 2010. Qualitative interview design: A practical guide for novice investigators.

The Qualitative Report, 15(3), 754-760. Retrieved on 08 April 2010 from:

http://www.nova.edu/ssss/QR/QR15-3/qid.pdf.

Page 113: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

100

Twort, A., Ratnayaka, D., and Brandt, M., 2000. Water Supply- 5th

Edition. Elsevier Ltd.

Butterworth-Heinemann, Great Britain.

Um, M., Kwak, S., and Kim, T., 2001. Estimating Willingness to Pay for Improved Drinking

Water Quality Using Averting Behavior Method with Perception Measure.

Environmental and Resource Economics 21: 287-301.

United Nations, 2009. The Millenium Development Goals Report, 2009. New York, U.S.A.

United Nations, 2006. Water Quality for Ecosystem and Human Health. United Nations

Environment Programme Global Environemnt Monitoring System/Water Programme.

Ontario, Canada.

Vanloon., G and Duffy, S., 2005. Environmental Chemistry – A Global Perspective, Second

Edition. Oxford University Press, New York, United States.

Wright, J., Gundry, S., and Conroy, R., 2004. Household drinking water in developing countries:

a systematic review of microbiological contamination between source and point-of-use.

Tropical Medicine and international Health- volume 9 no I PP 106-117. January 2004.

World Bank, 2010. World Bank national accounts data, and OECD National Accounts data files.

Accessed on 12 May 2010 from http://data.worldbank.org/indicator/NY.GDP.PCAP.CD

World Health Organization (WHO), 2008. Guidelines for Drinking-water Quality: Incorporating

1st and 2nd addenda, Vol.1, Recommendations. – 3rd edition. Geneva, Switzerland.

World Health Organization (WHO), 2009. Potassium in drinking water- Background document

for development of WHO Guidelines for Drinking-water Quality. WHO Document

Production Services, Geneva, Switzerland.

Zamberlan da Silva, M.E., Santana, R., Guilhermetti, M., Filho, I., Endo, E., Ueda-Nakamura,

T., Nakamura, C., Filho, B., 2008. Comparison of the bacteriological quality of tap water

and bottled mineral water. Int. J. Hyg. Environ. Health.

Page 114: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

101

APPENDIX 1

Per Capita Bottled Water Consumption by Country, 1999 to 2004

(Source: The Pacific Institute, 2009)

Page 115: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

102

Page 116: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

103

Total bottled Water Consumption by Region, 1997 to 2004

(Source: The Pacific Institute, 2009)

Page 117: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

104

APPENDIX 2

Summary of Bottled Water Industry Data

No Year of

Establishment

Source of

Water

Size of

Containers

Produced

Water Treatment Process Areas of

Distribution

# of bottles sold in

Ramallah and Al-

Bireh governorate

(2009)

Approx

Price (NIS)

1 1996 Spring ½ L., 2L. Reverse Osmosis West Bank 2L. : 828,000

½ L. : 168,000

½ L.= 2

2L.= 3

2 1998 Spring ½ L., 1½ L. Sedimentation, sand filtration,

activated carbon filtration,

ozonation, ultra filtration, UV

West Bank,

Gaza, Israel

Approx total: 5.6

million

½ L.: 1.68 million

1 ½ L.:3.92 million

½ L.= 2

1 ½ L.= 1.4

3 1999 Spring 18.9 L. Sedementation, chlorination,

sand filtration, carbon filtration,

RO, softner, UV

West Bank,

Jerusalem

Approx. 115,000 35

4 2000 Imported from

Jordan

½ L., 1½ L Reverse Osmosis West Bank ½ L. : 741,600

1 ½ L. : 225,000

½ L.=2

1 ½ L.= 2

5 2000 Imported from

Jordan

½ L., 1½ L,

2L.

Filtration West Bank ½ L.: 43,200

1½ L.:55,800

2L.: 32,400

½ L.= 2

1 ½ L.= 2.5

2L.= 3

6 2003 Municipality 18.9L. Sand filtration, carbon

filtration, nitrate filtration,

softner, UV, RO, Ozone filter

Ramallah and

Jericho

governorates

Approx. 35,000 20

7 2003 Spring 1 ½ L.

West Bank Approx. 108,456 1 ½ L. = 3

8 2006 Well ½ L., 1½ L Chlorination, sand filtration,

RO, UV, ozonation

West Bank Approx total:

175,000

½ L.: 105,000

1 ½ L.: 70,000

½ L.= 2

1 ½ L.= 2

9 2007 Municipality ½ L., 1½ L Sedimentation, sand filtration,

carbon filtration, RO, softner

West Bank ½ L.: 10,800

1 ½ L.: 10,080

½ L.= 1

1½L.=1.25

10 2008 Spring ½ L., 1½ L Chlorination, sand filtration,

carbon filtration, UV, ozonation

West Bank,

Israel, Gaza

Approx total: 2.028

million

½ L.: 1.092 million

½ L. =1

1½ L.=1.5

Page 118: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

105

1½ L. 0.936 million

11 2008 Municipality 18.9L. Sand filtration, carbon

filtration, nitrate filtration,

softner, UV, RO, ozone

filtration,

West Bank - 20

12 2009 Municipality 18.9L. Sand filtration, carbon

filtration, softner, RO, cellulose

filter, UV, ozonation

West Bank - 30

13 2009 Spring 1½ L Chlorination, sand filtration,

carbon filtration, UV, ozonation

West Bank - 1 ½ L.=1.5

14 2010 Spring 1½ L Chlorination, sand filtration,

carbon filtration, UV, ozonation

West Bank - 1 ½ L.= 1.5

Page 119: Faculty of Graduate Studies Water and Environmental ...Faculty of Graduate Studies Water and Environmental Engineering Masters Program MSc. Thesis The Opportunity Cost of Drinking

106